Farm loan waivers to alleviate farmers' distress worst solution for rural crisis: SBI Research
Bankers and the Reserve Bank (RBI) have often expressed concern that debt waivers can wreck credit culture. Stating that up to Rs 70,000 crore will be spent on farm debt waivers till May 19 (when the general elections are scheduled to be held), it said this makes it a "frightening challenge" for the banking community ahead.
There are 21.6 crore small and marginal farmers and such a scheme is the only way to support the farmers, apart from ensuring market prices for their produce, it said. Image source: Reuters