Director/Chief Executive Officer
All Scheduled Commercial Banks (including RRBs and SFBs)
Flow to Agriculture- Collateral free agricultural loans
Please refer 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,
2. In this connection, please
refer to our circular RPCD.PLFS.BC.No
85/05.04.02/2009-10 dated June 18, 2010 on the captioned
3. Keeping in view the overall
inflation and rise in agriculture input cost over the years since 2010, it
has been decided to raise the limit for collateral free agricultural loans
from the existing level of ?1 lakh to ?1.6 lakh. Accordingly, banks may
waive margin requirements for agricultural loans upto ?1.6 lakh.
4. You are requested to give
adequate publicity to this change and instruct your controlling
offices/branches to implement the same immediately.
5. Please acknowledge receipt.
(Sonali Sen Gupta)
Chief General Manager