Bank will be paid over 4 years for farm loan waiver scheme

• Author: admin
• Filed under: Bank, Budget
• Date: Mar 16,2008

Indian Finance Minister Mr P.Chidambaram while asked about when will be the Banks compensated for the Farm Loan Waiver scheme , he has told that the Commercial, Regional , Rural and Co-operative banks will be paid fully in cash over a period of 4 years starting july 2008.
The compensation Period is as follows .
>After 30th june 2008, govt will provide 25,000 cr in cash .
>So the balance of remaining to be paid over three financial years -
>15,000 crores in 2009,
>12,000 crores in 2010 and
> 8000 crores in 2011.
I’m really not sure how come this can be done after 2008 as we will not be sure who will be in the center and if someone else is there what will happen to this scheme of compensation.But im thinking banks would see some movement tomorrow.