Though RBI showed reluctance, Telangana government decided to go ahead with loan waiver. The Government issued orders with regard to waiving loans up to one lakh rupees. Government will take responsibility for the loans taken up to March 31st, 2014. The total estimated cost of this scheme is 19,000 Crores.
Though a family may have taken loans through more than one account in more than one bank, government will pay up to 1 lakh Rupees only. Eligible farmers for this scheme will be selected in three stages.
In first stage Government will collect details about loans taken by farmers from various banks in Village level. These details will be compared with statistics at Mandal level and finally at state level.
In second stage Mandal Joint Committees will examine the details collected in first stage and list of Farmers with loans up to 1 lakh Rupees will be prepared.
In third stage deputy collector range officer will conduct social audit in villages. After this, final list of farmers will be displayed in Panchayat Offices in every village. According to this list banks will give new loans for kharif season.