24 April, Mumbai
The Reserve Bank has revised Priority Sector Lending norms, asking to give 8 per cent of their total credit to small and marginal farmers.
In a statement issued from Mumbai Thursday, it has informed that overall target for agriculture has been kept unchanged at 18 per cent.
However, the distinction between direct and indirect agriculture has been dispensed with and loans to food and agro processing units will now form part of agriculture.
According to the revised rules which have come into effect immediately, RBI has added new segments like medium enterprises, social infrastructure and renewable energy firms under the ambit of priority sectors.
The RBI has said that overdraft facility under Pradhan Mantri Jan Dhan Yojna would also be considered as priority sector lending.
The apex bank also said that bank loans of up to 10 lakh rupees extended to individuals for educational purposes, including vocational courses, will be eligible for the Priority Sector Lending.