Bad idea
The reported move by the government, to prepare for a virtually across-the-board waiver of bad or rescheduled agricultural loans, is imprudent in every way. Most importantly, it may end up crippling the agricultural credit system, which is what happened once earlier with the then deputy prime minister, Devi Lal's, loan waiver of 1990. The cooperative credit sector has still not fully recovered from that blow. Apart from turning cooperative credit banks sick, it made even the commercial banking sector wary of disbursing crop loans for a long time after that ill-conceived move.
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