No loan waiver by the central government, says Arun Jaitely

The strong hearsay about loan waivers, post the UP elections, were crippled by the Finance Minister, Arun Jaitely on March 23, 2017, as the Minister ruled out the chances of a loan waiver by the Centre.


The loan waiver was one of the most lush election promises made by the UP CM Yogi Adityanath before the elections.

While ruling out the Centre's resolve for a loan waiver, the Minister affirmed that the States may use their own resources in this regard. He also emphasised on the continuation of the Centre's various schemes and policies for the agriculture sector, which largely provide interest subvention and other supports. 

In a parallel development, the Minister also confirmed the probability of the announcement of a policy push to counter the surmounting bad loans of the public sector banks, reaching about Rs 1 lakh crore in Q3FY17. The Finance Ministry will take a policy decision in regard to non-performing assets, in association with the Reserve Bank of India, soon, as reported by a leading finance daily.