RBI, Nabard lay emphasis on institutional credit in T

In Hyderabad, Chief Minister A Revanth Reddy's proposal for a loan waiver has sparked debate, while the Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) advocate for alternative measures to ease agricultural sector stress. They propose creating credit guarantee funds for agricultural loans to broaden institutional credit access. RBI's 'Review Agricultural Credit in India' study highlights the lack of bank guarantee schemes for farmer loan defaults. It recommends central and state governments establish an agricultural loan guarantee fund akin to MSME sectors. Focus is also on educating farmers about their rights under the Usurious Loans Act and simplifying loan processes.