RBI Clarification – Priority Sector Lending – Targets and Classification Revision of Limits

RPCD.CO.Plan. BC 72/04.09.01/2012-13

May 03, 2013

The Chairman/ Managing Director/
Chief Executive Officer
[All scheduled commercial banks
(excluding Regional Rural Banks)

Madam/Dear Sir,

Priority Sector Lending-Targets and Classification Revision of Limits

Please refer to paragraph 65 of the Monetary Policy Statement for the year 2013-14. The following limits under priority sector stand revised upward with effect from April 01, 2013.

1. Agriculture

(i) The limit of loans to farmers against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months stands increased from  ` 25 lakh to ` 50 lakh both under direct and indirect agriculture.

[Effect on July 20, 2012 circular: Paragraph III 1.1 (iv) and Paragraph 1.2.1 (iv) would stand amended accordingly]

(ii) The limit of loans to dealers/sellers of fertilizers, pesticides, seeds, cattle feed, poultry feed, agricultural implements and other inputs has been raised to `5 crore per borrower from `1 crore.

[Effect on July 20, 2012 circular: Paragraph III 1.2.2 (i) would stand amended accordingly]

2. Micro and Small Enterprises

The limit of bank loans to Micro and Small Service Enterprises (MSEs) engaged in providing or rendering of services has been increased from `2 crore to `5 crore per borrower/unit, provided they satisfy the investment criteria for equipment as defined under MSMED Act, 2006.

[Effect on October 17, 2012 circular on priority sector: Paragraph 2 would stand amended accordingly]

Yours faithfully,

(T. V. Rao)
Deputy General Manager

Tags: AgricultureBusinessChairmanLoanMonetary policyRegional Rural BankReserve Bank of India

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