The Maharashtra government will go in for direct benefit transfers (DBT) of grants into the accounts of farmers instead of paying banks for write-offs.
The state government view is that this will make it possible for farmers to meet their short-term credit needs and also repay some outstanding loans, reports DNA.
The farmers in Maharashtra have outstanding borrowings of Rs 30,500 crore with banks and they have been demanding loan waivers.
Frequent loan waivers, the govt says, will not only distort the repayment culture but also further burden the cash- strapped govt. exchequer.
Chief minister Fadnavis claimed in the state assembly loan waivers would only help the co-operative banks in Maharashtra which are controlled by the Congress and NCP.
