The Reserve Bank of India has stunned Andhra Pradesh and Telangana governments in the farm loan waiver matter. RBI governor Raghuram Rajan has clarified that there is no need to waive the farm loans or reschedule them and added RBI does not have structure to implement farm loan waiver. Rajan said that before elections, this promise was made by political parties to seek gain but farm loan waiver is not a good practice which could disturb the payment structure of loans.

Further, Rajan said there hasn't been much impact of the Pilan toofan which occurred early this year. “Generally district collectors are supposed to send report of emergency situations in district when to comes toofan or any natural hazard but no collector from Andhra Pradesh has send any sort of report, so we have to consider there is not much of damage because of the toofan,” said Rajan.

This is a mere shock to Andhra Pradesh and Telangana governments as they have promise to waive the farm loans. Interestingly, yesterday AP minister P Pulla Rao has announced that the government will waive all the loans in the next two months while Telangana CM KCR at Karimnagar said, the process has already started.

The statements of RBI and AP, T governments shows there is clear lack of communication and coordination and are confusing the farmers in both the states.

(AW: Vamshi)