FM says govt to disburse Rs 25000 crore for farm loan waiver scheme

Finance Minister P Chidambaram today said the government will disburse immediately Rs 25000 crore to banks for a farm loan waiver scheme, to ease tight cash conditions in the financial system. The government will also increase cap on foreign investment in Indian corporate debt as part of the steps to boost liquidity. Chidambaram said while Indian banks were well capitalised, they would be given access to funds to raise their capital adequacy ratio up to 12%. He said the central bank would make a statement soon.