Stiff norms for money lenders

The Reserve Bank of India may go for major rural push in its forthcoming monetary policy review slated to be unveiled on October 31.

As part of the policy, the central bank is considering the option of making bank finance to money lenders for on-lending to farmers as priority sector lending.

The money lenders will be registered with the respective state governments and there will be tight monitoring of the end use of the funds and interest rate charged to the farmers.

However, the RBI is yet to finalise its views on these recommendations, banking sources said. The RBI proposal assumes significance against the backdrop of Prime Minister Manmohan Singh's admission that many parts of the country were facing an agricultural crisis.