Outstanding deposits under RIDF under priority lending

Banks' outstanding deposits under the Rural Infrastructure Development Fund (RIDF) and some funds with NABARD would be treated as priority sector lending under indirect agriculture category, RBI said today.
"It has been decided to include the outstanding deposits placed by banks under Rural Infrastructure Development Fund (RIDF) and certain other funds established with NABARD, on account of their shortfall in lending to priority sector as part of indirect agriculture under priority sector classification," RBI said in a notification.
The outstanding deposits as on March 31 of the current year under RIDF, Warehouse Infrastructure Fund, Short Term Co-operative Rural Credit Refinance Fund and Short-Term RRB Fund with NABARD will be treated as part of indirect agriculture and will count towards overall priority sector target achievement.

"The outstanding deposits under the above funds with NABARD as on preceding March 31 will form part of Adjusted Net Bank Credit," it added.
Loans to corporates including farmers' producer companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in agriculture and allied activities, such as dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to cocoon stage) are among indirect agriculture lending.
Credit to dealers/sellers of fertilisers, pesticides, seeds, cattle feed, poultry feed, agricultural implements, construction and running of storage facilities, setting up of agriclinics and agribusiness centres are also amongst the indirect agriculture lending.
Agriculture, small scale industries, education, housing and export credit are categorised as priority sector lending for which domestic banks are expected to lend about 40 per cent of their advances.