RBI/2012-13/487
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
