Farm distress: ADB India chief favours direct transfer of funds to targeted beneficiaries
Earlier this week, RBI Governor Shaktikanta Das said any generalised farm loan waiver adversely impacts the credit culture and the behaviour of borrowers, amid various states announcing waivers. He said loan waiver is related to the fiscal space that a particular state government has.
About Rs 1.47 lakh crore of agricultural loans are outstanding in Madhya Pradesh, Rajasthan and Chhattisgarh, which announced waivers recently. Image source: IANS