Credit Flow to Agriculture- Collateral free agricultural loans

With  reference to paragraph 13 of the Statement on Development and Regulatory Policies of the Sixth Bi-Monthly Monetary Policy Statement for 2018-19 released on February 7, 2019 RBI has vide notification dated 7th February 2019 informed all the Scheduled Commercial Banks including RRB & SFB's to raise the limit for collateral free agriculture loans to Rs. 1.6 lakh thereby waiving the margin requirement for agriculture loans upto Rs 1.6 lakh from existing Rs 1 lakh.

This has been done keeping in view the overall inflation and rise in agriculture input cost over the years since 2010.

Banks have been requested to give adequate publicity to this change and instruct their controlling offices/branches to implement the same immediately.

Source: RBI Notification no. RBI/2018-19/118
FIDD.CO.FSD.BC.No.13/05.05.010/2018-19 dated February 7, 2019