Chidambaram sets deadline for loan waiver to banks

Bangalore: It is significant that as part of the commitment in the budget speech of Union Finance Minister Chidambaram all the banks have to implement and waive off farmers loan.

Addressing the media on the sidelines of an official bank function in Bangalore on Monday Chidambaram has said that the nationalized banks would waive off farmers loan by end of this month as part of the commitment by the United Progressive Alliance (UPA).

In his budget speech, the Finance Minister had set June 30 as the deadline for waiving bank loans to small and marginal farmers with holdings up to three hectares.

The size of the loan waiver scheme was increased in May to Rs 716.8 billion from the Rs 600 billion set initially, as the number of beneficiaries has been estimated to be about 40 million.

Earlier in the day Karnataka Chief Minister BS Yeddurappa met the Finance Minister and requested him to consider loan for the farmers with just four per cent interest by the nationalized banks.

He also requested funds for infrastructure development of Bangalore.