Kumarswamy Blames Nationalized banks for Refunding of Loan Waiver Amount

News Bharati    11-Jun-2019

Bengaluru, June 11: Karnataka Chief Minister H. D. Kumarswamy has blamed the nationalized banks for the discrepancy in the bank accounts of 13, 988 farmers whose loan waiver amount was refunded to the government. He said today that a meeting of various bank representatives is called on Friday to discuss as to why the loan waiver amount in the farmers’ bank accounts were refunded back to the government.

Karnataka Government had waived 4830 crore rupees loans of 7.49 lakh farmers from commercial banks and 3488 crore rupees of over eight lakh farmers in the co-operative banks after assuming office last year, but a few media had reported that the loan waiver amount deposited in the farmers’ account was taken back by the government after the ruling party in the state lost the Lok Sabha elections. The government has not denied these reports but it has put the blames on the banks. The limit for farm loan waiver was capped at Rs. 2 lakh per family. The State Budget 2019-20 also allocated an additional Rs. 6893 crore or Rs. 25000 back to the farmers’ accounts, as an incentive for not defaulting farm loans.