NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das Monday said any generalised farm loan waiver adversely impacts the credit culture and the behaviour of borrowers, amid various state governments announcing waivers.The statement assumes significance in view of three newly elected state governments implementing farm loan waivers in their states in pursuance of poll promises.When asked about his views on loan write-off for farmers by state governments, he said farm loan waiver is related to the fiscal space that a particular state government has. "We have more than adequate notes of Rs 2,000 in the system with over 35 per cent of notes by value in circulation being of Rs 2,000. "Lot of correspondence goes on between the government and the Reserve Bank. "Reserve Bank takes the final decision on matters which are in its own domain, after considering all the aspects. So, Reserve Bank will listen to everybody.

Source: Economic Times January 07, 2019 10:07 UTC