HYDERABAD: The Reserve Bank of India (RBI) has told the Andhra Pradesh government it would only allow rescheduling of kharif crop loans amounting to Rs 10,500 crore taken last year.
This is a major setback for the government, which had sought rescheduling of farm loans worth Rs 35,000 crore.
A team of officials on Friday rushed to Mumbai to persuade RBI officials to at least extend the rescheduling to rabbi season, which amounts to another Rs 15,000 crore.
Sources said the RBI has indicated to the state government it was ready to extend a one-year moratorium on kharif loans taken last year and a rescheduling of the loan payment for a period of three years.
The state government was seeking a rescheduling of the loans over a period of seven years.
It would request the finance ministry to support the loan waiver if the RBI does not relax the norms. The government was hoping to fulfill its election promise by rescheduling the loans.
Finance minister Yanamala Ramakrishnudu had on Wednesday claimed the RBI had agreed to reschedule the loans.
But the central bank clarified the permission for rescheduling was limited to only loans taken during the kharif season last year.