2023
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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On December 26, 2020, Jharkhand’s ____ :The Jharkhand Cabinet recently approved a loan waiver up to Rs 50, 000 for 9.07 lakh farmers. The cabinet has earmarked Rs 2, 000 crores for the purpose.
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Farm Loan Waiver Scheme
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Farmers Loan Waiver Scheme
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Farming Loan Waiver Scheme
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None of the above
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Explanation:
Detailed explanation-1: -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-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.
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