Banks to get 250-bln-rupee part payout for farm loan waiver in Aug

NEW DELHI - India's liquidity-constrained money markets, keenly hoping for banks to get the first instalment of 250 bln rupees from the government under the farm loan waiver scheme, will have to wait at least till early August.     The government needs Parliament approval for the payout, and the monsoon session is likely to be convened only in August first week, a senior finance ministry official told NewsWire18 today.     "The instalment, which will be part of the supplementary demand for grants, will be tabled in monsoon session of Parliament for its nod," the official said.     The government concluded its ambitious 716.80-bln-rupee farm loan wavier scheme on Jun 30. Under the plan, the government has completely waived off all loans of marginal and small farmers that were overdue on Dec 31 and remained unpaid till Feb 29.     The scheme, which benefited 40 mln farmers, covered all farm loans disbursed by commercial banks, regional rural banks, and cooperative banks.     In respect of other farmers, there was a one-time settlement scheme for all loans that were overdue on Dec 31. Under this scheme, a rebate of 25% has been given against payment of balance 75%.

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