(a) whether the Reserve Bank of India has relaxed the norms for priority sector lending
to agriculture;
(b) if so, the details thereof;
(c) whether lending to agriculturists and agri business centres under the revised
guidelines qualify as direct loans to the agricultural sector;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBAADSUL) :
(a) and (b) Reserve Bank of India (RBI) has reported that during the year 2002-2003 certain
changes in the scope of lending to agriculture under priority sector were brought about.
These include, increasing of limit for financing of distribution Of inputs for agriculture
and allied activities such as cattle feed, poultry feed, etc. from Rs. 15 lakh to Rs.
25 lakh, increasing the limit for produce marketing loan from Rs. 1 lakh to Rs. 5 lakh
and enhancing the repayment schedule to twelve months. Further, the limit on advances
granted to dealers in drip irrigation/spinkler irrigation system/agricultural machinery,
located in rural/semi urban areas has also been increased from Rs. 10 lakh to Rs. 20 lakh
under priority sector lending for agriculture.
(c) to (e) The lending by banks to agri-clinics and agribusiness centres is treated as
direct finance to agriculture under priority sector lending as the Scheme aims at
supplementing the existing extension network to accelerate the process of technology
transfer to agriculture and providing supplementary sources of input supply and services,
for which, by and large, farmers presently depend on State agencies.