The so-called crop loan waiver scheme announced by the Telangana and Andhra Pradesh governments has come a cropper with banks rejecting the same outright and declaring that farmers should clear their old loans first to get fresh loans.
Andhra Bank General Manager C Duraiswamy on Friday made it clear that no fresh loans would be issued to the farmers who have defaulted in repayment of earlier loans.
Speaking to media persons, Duraiswamy said that the banks were not concerned with the assurances given by Andhra Pradesh or Telangana Governments on waiving off farm loans.
He said that the governments could waive off the loans, but being commercial institutions banks could not do so.
He said that the Reserve Bank of India has issued directions asking the banks to issue fresh loans only to the regular account holders and not the defaulters.
