The Reserve Bank of India (RBI) on December 06, 2024, issued a notification regarding Credit Flow to Agriculture – Collateral free agricultural loans.
The following has been stated: -
•The limit for collateral-free agricultural loans, including loans for allied activities, has been increased from ₹1.6 lakh to ₹2 lakh per borrower. Banks are required to waive collateral and margin requirements for loans up to this amount. These revised instructions must be implemented by January 01, 2025.
•Banks should also publicize the changes adequately.
[Notification No. RBI/2024-25/96FIDD.CO.FSD.BC.No.10/05.05.010/2024-25]
