With a view to encouraging farm credit to individual farmers against pledge/hypothecation of agricultural produce, RBI decided to enhance the loan limit under priority sector lending (PSL) from Rs 50 lakh to Rs 75 lakh per borrower against the pledge/hypothecation of agricultural produce backed by Negotiable Warehouse Receipts (NWRs)/electronic-NWRs (e-NWRs) issued by warehouses registered with the Warehousing Development and Regulatory Authority (WDRA). For other Warehouse Receipts, the loan limit for classification under PSL will continue to be Rs 50 lakh per borrower.
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Surbhi Saxena edits the daily Current Affairs News.
The author is qualified member of The Institute of Company Secretaries of India (ICSI).