Which of the following is/are true about the Loan Waiver Scheme for the farmers launched by the Govt of India recently?begin{enumerate}item The Govt has taken over the debt of the farmers and has made reimbursement to the banks.item The Govt has identified 237 lowproductivity districts where farmers would be eligible for a minimum loan relief of Rs. 20, 000 even if their land holdings were above two hectares.item Andhra Pradesh has the highest number of beneficiaries of the scheme.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is/are true about the Loan Waiver Scheme for the farmers launched by the Govt of India recently?

A	Only 1
B	Only 2
C	Only 3
D	All the above

Explanation:

Detailed explanation-1: -In a farm loan waiver scheme, the Centre or the state Government repays the loan to the banks on behalf of the farmers, simply by using public money collected in the form of taxes. When there is a poor monsoon or natural calamity, farmers cannot repay their loans.

Detailed explanation-2: -Reputational Consequences: Loan waiver schemes will disrupt credit discipline as farm loan waivers may act as a temporary solution and can prove to be a moral hazard in future. This is because those farmers who can afford to pay their loans might not pay it expecting a waiver.

Detailed explanation-3: -A loan waive-off is a benefit offered to borrowers by the government where the borrower is no longer under the burden of paying back the loan amount to the lender as a result of a genuine change in their financial circumstances. Examples of loan waivers are the Agricultural Debt Waiver and Debt Relief Scheme in India.

Detailed explanation-4: -New Delhi: The Uttar Pradesh government has decided to waive off farm loans of up to Rs 1 lakh for farmers across 19 districts in the state. A notification in this regard has also been issued, reported Dainik Jagran, adding that 33, 408 farmers in the state will be benefitted from this move.

There is 1 question to complete.