Tamil Nadu government would write off all loans farmers have taken from cooperative banks. Chief Minister Jailalitha made this announcement while releasing her party’s election manifesto in a rally in the state, reports Hindu.
Farmer leaders welcomed the announcement saying this was a step that would bring relief to farmers.
Sources say sandwiched between the whims of state govts and the norm-binding dictates of NABARD the cooperative banks face great difficulties.
Experts say cooperative banks’ NPA would unusually spike should Jailalitha come to power again.