You are here: Home » News-IANS » Business-Economy
Business Standard

RBI raises collateral-free farm loan limit to Rs 1.6 lakh

IANS  |  Mumbai 

In a major relief to farmers, the (RBI) here on Thursday raised the collateral-free agriculture loans' limit to Rs 1.6 from Rs 1

"Keeping in view the overall inflation and rise in agriculture input costs, it has been decided to raise the limit for collateral-free agriculture loans from Rs 1 to Rs 1.6 lakh," the RBI said in the 'Statement of Developmental and Regulatory Policies' released after the sixth and last (MPC) meeting of the current fiscal.

A circular to increase the limit would be issued shortly, it said and added the decision would enhance coverage of small and marginal farmers in the formal credit system.

The RBI also set up an internal working group to review agriculture credit and arrive at a "and policy initiatives".

The RBI statement noted that although agricultural credit growth has been significant over the years, issues like regional disparity and extent of coverage have remained.

"There is also the issue of deepening long-term agricultural credit for capital formation. To examine these issues and arrive at and policy initiatives, an internal working group to review agricultural credit has been constituted," it said.

--IANS

rrb/ksk/pcj/ab

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 07 2019. 16:18 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU