RBI proposes ₹100 crore limit on bank loans for agri infrastructure ...Middle East

The Reserve Bank on Thursday proposed that loans for agricultural infrastructure will be subject to an aggregate sanctioned limit of Rs 100 crore per borrower from the banking system. As part of the ongoing effort towards consolidation of various instructions, the Reserve Bank of India said it has undertaken a review of the extant guidelines relating to Priority Sector Lending (PSL) and proposes to issue directions on the subject for different regulated entities, including commercial banks and regional rural banks. A draft direction on commercial banks proposed an aggregate loan limit of Rs 4 crore per borrowing entity for crop loans, medium and long-term loans for agriculture and allied activities, as well as loans for pre- and post-harvest activities. It also said: "Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of Rs 100 crore per borrower from the banking system." The lending to the agriculture sector will include farm credit (agriculture

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