States keen on farm loan waiver must generate funds from their own resources: Arun Jaitely

12 June, New Delhi

Union Finance Minister Arun Jaitley Monday said states keen on farm loan waiver must generate funds from their own resources.

Speaking after meeting bank chief executives in New Delhi, Jaitley said that the Reserve Bank of India, RBI is at an advanced stage of preparing a list of bad loans where resolution is required under the country’s insolvency and bankruptcy rules.

He said the government has authorised the central bank to direct banks to initiate an insolvency resolution process in the case of a default under provisions of the bankruptcy code.

The finance minister also said the government was actively working on consolidating state-run banks. Mr Jaitley said PSBs made stable operating pofit of 1.5 lakh cr rupees in 2016-17.