RBI to release 1,700 cr to Telangana banks

Hyderabad, July 03: Reserve Bank of India will release 1,700 crores here on Monday to banks in Telangana, to overcome the shortage of notes of smaller denomination and lend to cash-strapped farmers in the ongoing sowing season, Union Minister for Labour Bandaru Dattatreya said.

He Announced at a media conference on Sunday that while banks in Hyderabad and Medak would get 200 crores each, eight other undivided districts in the State would get 130 crores each, he said.

"I have also spoken to Finance Minister Etala Rajender about waiver of loans for farmers. The fourth part of waiver should be complete soon," the Minister said.

He added that he would also hold talks with Union Finance Minister Arun Jaitley to support the State in the waiver of loans.

The Union Minister said an amount of 23, 000 crore is to be disbursed to farmers in Telangana. As an immediate measure, 1700 crore will be released on Monday, according to a statement from the Press Information Bureau.

While the districts of Karimnagar, Nalgonda, Warangal, Adilabad, Nizamabad, Mahabubnagar, Khammam and Ranga Reddy will get 130 crores each, Hyderabad and Medak will receive 200 crores each.

The Minister said the Centre and State governments should work in coordination for the success of GST.