After the loss in the recent elections in Rajasthan, Madhya Pradesh and Chhattisgarh, Pradhan Mantri Narendra Modi is planning to launch a mega Kisan Karz Mafi Yojana. This information is given by the sources from Reuters which said that under PM Modi Farm Loan Waiver Scheme, bank loans of around 26 crore farmers across the country could be waived off. The total outlay for this kisan karj mafi scheme would be around Rs. 4 lakh crore.
As per the sources, this decision will be taken because Congress has got a majority in the Hindi heartland due to the announcement of PM crop loan waiver scheme. Modi govt. wants to perform the damage control and will announce this debt waiver scheme to prevent any damage in the upcoming Loksabha elections.
This PM Kisan Karja Mafi Scheme decision is to impress the people from the rural areas who are a major cause of loss in the recent assembly elections in 3 states.
PM Modi Plans Kisan Karz Mafi Yojana
After 2014, Farmers Karj Mafi Scheme has become a major tool to win elections in the country. Modi led NDA govt. understands this new trend and so to secure a comfortable win in the Loksabha elections which are just 6 months away, PM Modi plans a mega Debt Waiver Scheme. Sources from Reuters revealed that all the crop loans taken by the farmers from any banks either commercial, cooperative and nationalized banks would be waived off.
Under this PM Farm Loan Waiver Scheme, govt. would waive off banks loans of approx. 26 crore farmers to a tune of Rs. 4 lakh crore. In 2009, UPA govt. has also got a win in the LS elections on the basis of a mega Kisan Karz Mafi deal in which they have waived off bank loans of around 52,000 crore.
PM Farm Loan Waiver Scheme decision would impact the entire banking organization and so the central govt. would have to work for the improvement of the banking sector.
RBI / SBI View on PM Farm Loan Waiver Scheme
Reserve Bank of India (RBI) stands in opposition of the PM Farm Loan Waiver Scheme as this disbalances b/w the lender and the loan takers. Previous RBI Governor, Raghuram Rajan stated this Debt Waiver Scheme as “Wrong on Moral Grounds”. However, this is their personal opinion and not of the entire RBI organization.
State Bank of India (SBI) also stated this PM Farm Loan Waiver Scheme as wrong doing because this would increase the ratio of Non-Perfoming Assets (NPAs). Moreover, people would then stop to pay their debt and would wait for the next elections to repay their loans.