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Clear bank dues when loans are waived: Nabard to states

Clear bank dues when loans are waived: Nabard to states

Finance
NEW DELHI: Amid a flurry of farm loan waivers, financial institution Nabard has written to states advising them to ensure that dues of banks that actually write-off the loan are immediately cleared to ensure that the credit cycle is not broken. The move follows the experience of several lenders in Andhra Pradesh and Tamil Nadu, where the dues have remained pending although they had written off the loans based on announcements from the state governments, banking sources said. In 2016, while announcing the Rs 6,000-crore loan waiver, Tamil Nadu, for instance, had decided to clear the dues of over Rs 3,200 crore to cooperative institutions over five years. States, such as Uttar Pradesh, have cleared the dues to lenders, the sources added. Nabard's advisory will put pressure on the states to ...