<p class="title">Former RBI Deputy Governor R Gandhi on Thursday cautioned governments, including the Centre, against frequently using "administrative tools" of farm loan waivers, as he stressed on maintaining credit discipline.</p>.<p class="bodytext">"Whether it is farmers and industrial loan waiver, it has an impact. The governments have to utilise this kind of tool sparingly and rarely.</p>.<p class="bodytext">Otherwise, it completely disturbs the credit discipline, and in the worst case scenario, financial institutions will not be able to survive," Gandhi told PTI.</p>.<p class="bodytext">The governments had to definitely look at the desirability of waivers at regular intervals, he added.</p>.<p class="bodytext">Many states have waived agriculture loans, the latest being Karnataka, where chief minister H D Kumaraswamy announced a mega loan waiver scheme in the budget that would cost Rs 34,000 crore to the state exchequer.</p>.<p class="bodytext">In addition, Kumaraswamy had later announced waiver of another Rs 10,700 crore in respect of cooperative banks. Rajasthan has also unveiled an Rs 8,500 crore waiver scheme.</p>.<p class="bodytext">Uttar Pradesh was the first state last year to announce Rs 36,359 crore farm debt waiver for small and marginal farmers. It was followed by Maharashtra and Punjab.</p>.<p class="bodytext">Asked if Rs 2.11 lakh crore capital infusion for NPA-hit public sector banks over a period of two years is inadequate, Gandhi said there is no such issue because the government revises the size of capital infusion according to their fiscal performance every quarter.</p>.<p class="bodytext">"For now, the government has announced Rs 2.11 lakh crore capital infusion, but going forward the government may infuse more or less capital, based on banks fiscal performance every quarter.</p>.<p class="bodytext">I definitely think banks and government, as also RBI, will be alive to look at revising the size of capital infusion," he said.</p>.<p class="bodytext">Asked if he has felt any predictable shift in how the world looks at India even as the Narendra Modi government is nearly completing its term, Gandhi said post-reforms all governments ruled by various parties had never reversed their steps to strengthen country's economy.</p>
<p class="title">Former RBI Deputy Governor R Gandhi on Thursday cautioned governments, including the Centre, against frequently using "administrative tools" of farm loan waivers, as he stressed on maintaining credit discipline.</p>.<p class="bodytext">"Whether it is farmers and industrial loan waiver, it has an impact. The governments have to utilise this kind of tool sparingly and rarely.</p>.<p class="bodytext">Otherwise, it completely disturbs the credit discipline, and in the worst case scenario, financial institutions will not be able to survive," Gandhi told PTI.</p>.<p class="bodytext">The governments had to definitely look at the desirability of waivers at regular intervals, he added.</p>.<p class="bodytext">Many states have waived agriculture loans, the latest being Karnataka, where chief minister H D Kumaraswamy announced a mega loan waiver scheme in the budget that would cost Rs 34,000 crore to the state exchequer.</p>.<p class="bodytext">In addition, Kumaraswamy had later announced waiver of another Rs 10,700 crore in respect of cooperative banks. Rajasthan has also unveiled an Rs 8,500 crore waiver scheme.</p>.<p class="bodytext">Uttar Pradesh was the first state last year to announce Rs 36,359 crore farm debt waiver for small and marginal farmers. It was followed by Maharashtra and Punjab.</p>.<p class="bodytext">Asked if Rs 2.11 lakh crore capital infusion for NPA-hit public sector banks over a period of two years is inadequate, Gandhi said there is no such issue because the government revises the size of capital infusion according to their fiscal performance every quarter.</p>.<p class="bodytext">"For now, the government has announced Rs 2.11 lakh crore capital infusion, but going forward the government may infuse more or less capital, based on banks fiscal performance every quarter.</p>.<p class="bodytext">I definitely think banks and government, as also RBI, will be alive to look at revising the size of capital infusion," he said.</p>.<p class="bodytext">Asked if he has felt any predictable shift in how the world looks at India even as the Narendra Modi government is nearly completing its term, Gandhi said post-reforms all governments ruled by various parties had never reversed their steps to strengthen country's economy.</p>