Overview
- On Friday Chief Minister Devendra Fadnavis announced the government will scrap the earlier Rs 2 lakh outstanding‑loan ceiling and extend the overdue‑loan cut‑off to include loans up to the 2026–27 year.
- The revision raises benefits for farmers who got relief under the 2019 Mahatma Phule scheme from a capped Rs 50,000 to up to Rs 2 lakh and is projected to reach about 56 lakh beneficiaries.
- Officials estimate the expanded Punyashlok Ahilyadevi Holkar waiver will cost roughly Rs 36,000 crore and said payments will be phased over multiple years with planned annual budget allocations.
- The changes came after reporting and opposition pressure highlighted that the original rules excluded many distressed borrowers, prompting a Cabinet sub‑committee and consultations with banks.
- Critics warn repeated, large waivers could weaken repayment discipline at cooperative and state banks and add long‑term fiscal risk, while the government says bank talks and one‑time settlements will limit disruption.