RBI Governor’s criticism of loan subsidy & debt reconciliation schemes!
Posted on: 14/Nov/2014 3:04:25 PM
Mr. Raghuram Rajan, the Governor of Reserve Bank of India (RBI), has severely criticised the schemes on loan subsidy and debt reconciliation.
The governor accused that the debtors take advantage of these schemes and use them in the wrong ways.
The state governments have gone on a spree of announcing debt reconciliation schemes affecting the stability of the stock market.
Even though these loan subsidies and debt reconciliation schemes provide temporary relief to the farmers, the reality is that it will affect them greatly in the long run.
There is also the trend of the farmers taking loans on the same crop more than 5 times.
The governor was speaking in the function organised in Mumbai by NABARD.
