Maharashtra won't extend loan waiver date, 'even RBI won't allow it' says CM

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Despite demands of farmers, Maharashtra government will not change the cut off date for loan waivers from June 30, 2016. Chief Minister Devendra Fadnavis said that it was impossible to extend the waiver for loans taken until June 2017. He also asked farmers to repay current loans to help banks.

During his direct interaction session, 'Mi Mukhymantri Boltoy', Fadnavis urged farmers to repay existing loans to help keep the banking system going. "Banks rely on repayment. The banking system survives on those who regularly repay their debt. Many people expect that the loan waiver would be extended up to 2017 and have not repaid loan despite being in a position to repay loans," he said.

Maharashtra won't extend loan waiver date, 'even RBI won't allow it' says CM

Fadnavis reiterated that the government will make no more changes to the loan waiver scheme and even the RBI would not approve extending the waiver for loans up to June 2017. "I request farmers who are in a position to repay their loans, to do so regularly. The banking system is in place relying on you. Even Reserve Bank of India would not allow changing the last date of the waiver, June 30, 2016," he added.

During the talk show, Fadnavis also reassured farmers that those who repay loans regularly will be given extra benefits of government schemes, in addition to the encouragement subsidy under the loan waiver scheme. He also announced that loan waiver will only be given only to farmers who are 100 per cent dependant upon agriculture. According to state policy farmers are provided loans at zero per cent interest up to Rs 1 lakh and two per cent for loans between Rs 1 and 3 lakh.

Farmers who have financial turnover exceeding Rs 10 lakh have been excluded from the Rs 34,000 crore loan waiver scheme announced by the Maharashtra government.

Owing to protests, the BJP-Shiv Sena government in Maharashtra had extended the cut off date for loan waiver scheme from April 2012 and June 30, 2016, to April 2009 and June 30, 2016. Despite the extension, farmer unions had demanded that waiver be extended for loans taken up to June 2017.

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