The Reserve Bank of India [RBI] has accepted for the rescheduling proposal of farm loan waiver scheme made by the Andhra Pradesh government. It is a sign of relief for the AP government which is under sever pressure from the opposition parties. However, AP government has asked RBI seven years time for rescheduling but the central bank alloted only three years time. Rs 87,000 crores farm loans are needed to be cleared by the AP Government in next three years and ironically it is running with a budget deficit of Rs 15,000 crores.

On the other side, the Telangana government is yet to declare its stand on the farm-loan waiver promise. Though RBI also accepted for rescheduling in Telangana state also, minister KTR yesterday announced that the government will waive farm loans without rescheduling. As Telangana state has sufficient budget, the government can go ahead with farm loan waiver at a stretch.