(a) whether as per the norms recently revised by the RBI loans for food and agro processing
units have been classified under the Micro and Small Enterprises category; and
(b) if so, the details thereof along with its likely repercussions and the reaction of food
and agro processing units thereto?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): In terms of revised RBI guidelines on Priority Sector Lending, loans to food jnd
agro processing units are classified under Micro and Small Enterprises (MSEs), provided the
units satisfy investments criteria prescribed for MSEs, as provided in VHcro, Small and Medium
Enterprises Development (MSMED) Act, 2006.
Since loans to food and agro processing units in MSE sector, are classified under priority
sector landing, banks are encouraged to increase their lending to this sector.