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1.
Agriculture credit
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A.
Credit Institutions
i.
Priority sector
credits
- Categories of Priority Sector
- Targets for scheduled commercial banks
- RBI guidelines for priority sector
lending by Regional Rural Banks
- Targets for priority sector lending by
Primary (Urban) Co-operative Banks (UCBs)
- Weaker sections under Priority sector
- Description of the eligible categories
under priority sector
Priority Sector means those
sectors which the Government of India and Reserve Bank of India consider as
important for the development of the basic needs of the country and are to be
given priority over other sectors. The banks are mandated to encourage the
growth of such sectors with adequate and timely credit.
The categories of priority sector
are as follows
- Agriculture
- Micro,
Small and Medium Enterprises
- Export
Credit
- Education
- Housing
- Social
Infrastructure
- Renewable
Energy
- Others
iii.
i.
Targets for scheduled commercial banks
The targets and sub-targets set
under priority sector lending for all scheduled commercial banks operating in
India are furnished below:
|
Categories |
Domestic scheduled commercial banks and foreign banks with 20
branches and above |
Foreign banks with less than 20 branches |
|
Total Priority Sector |
40 per cent of Adjusted Net Bank Credit [ANBC defined in sub
paragraph (iii)] or Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher. |
40 per cent of Adjusted Net Bank Credit [ANBC defined in sub paragraph
(iii)] or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever
is higher; to be achieved in a phased manner by 2020 as indicated in sub
paragraph (ii) below. |
|
Agriculture |
18 per cent of ANBC or Credit Equivalent Amount of Off-Balance
Sheet Exposure, whichever is higher. Within the 18 per cent target for agriculture, a target of 8
percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher is prescribed for Small and Marginal Farmers.## |
Not
applicable |
|
Micro
Enterprises |
7.5
per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher |
Not
applicable |
|
Advances
to Weaker Sections |
10
percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever
is higher |
Not
applicable |
For complete guidelines, click
here.
RRBs will have a target of 75 per
cent of their outstanding advances for priority sector lending and sub-sector
targets as indicated in table below.
|
Categories |
Targets |
|
Total
Priority Sector |
75
per cent of total outstanding * |
|
Agriculture |
18
per cent of total outstanding |
|
Small
and Marginal Farmers |
8
percent of total outstanding |
|
Micro
Enterprises |
7.5
per cent of total outstanding |
|
Weaker
Sections |
15
per cent of total outstanding |
* The overall Priority Sector
target should be achieved across all prescribed categories viz. – Agriculture,
MSME, Education, Housing, Social Infrastructure, Renewable Energy and Others.
However, lending to Medium Enterprises, Social Infrastructure and Renewable
Energy shall be reckoned for priority sector achievement only up to 15 per cent
of total outstanding.
The computation of priority
sector targets/sub-targets achievement will be based on the total outstanding
as on the corresponding date of the preceding year.
ii.
Targets for priority sector lending by Primary (Urban)
Co-operative Banks (UCBs)
- 45%
of adjusted net bank credit (ANBC) as or credit equivalent amount of
off-balance sheet exposure (CEOBSE) whichever is higher as of 31st March
2021 should go to priority sector advances
- 10%
of the priority sector advances or 10% of the total net bank credit,
whichever is higher should go to weaker section.
- 7.5
percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher should go to Micro enterprises
i.
Weaker sections under Priority sector
Priority sector loans to the following
borrowers will be considered under Weaker Sections category
|
Sl.No |
Category |
|
1. |
Small
and Marginal Farmers |
|
2. |
Artisans,
village and cottage industries where individual credit limits do not exceed
Rs 1 lakh |
|
3. |
Beneficiaries
under Government Sponsored Schemes such as National Rural Livelihoods Mission
(NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme
for Rehabilitation of Manual Scavengers (SRMS) (only for RRBs) |
|
4. |
Scheduled
Castes and Scheduled Tribes |
|
5. |
Beneficiaries
of Differential Rate of Interest (DRI) scheme (only for RRBs) |
|
6. |
Self
Help Groups |
|
7. |
Distressed
farmers indebted to non-institutional lenders |
|
8. |
Distressed
persons other than farmers, with loan amount not exceeding Rs 1 lakh per
borrower to prepay their debt to non-institutional lenders |
|
9. |
Individual
women beneficiaries up to Rs 1 lakh per borrower |
|
10. |
Persons
with disabilities |
|
11. |
UCBs : Overdrafts
upto Rs 5,000/- under Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts,
provided the borrowers’ household annual income does not exceed Rs 100,000/-
for rural areas and Rs 1,60,000/- for non-rural areas RRBs : Overdraft
limit to PMJDY account holder upto Rs 10,000/- with age limit of 18-65 years |
|
Sl.No |
Category |
|
1. |
Small
and Marginal Farmers |
|
2. |
Artisans,
village and cottage industries where individual credit limits do not exceed
Rs 1 lakh |
|
3. |
Beneficiaries
under Government Sponsored Schemes such as National Rural Livelihoods Mission
(NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme
for Rehabilitation of Manual Scavengers (SRMS) (only for RRBs) |
|
4. |
Scheduled
Castes and Scheduled Tribes |
|
5. |
Beneficiaries
of Differential Rate of Interest (DRI) scheme (only for RRBs) |
|
6. |
Self
Help Groups |
|
7. |
Distressed
farmers indebted to non-institutional lenders |
|
8. |
Distressed
persons other than farmers, with loan amount not exceeding Rs 1 lakh per
borrower to prepay their debt to non-institutional lenders |
|
9. |
Individual
women beneficiaries up to Rs 1 lakh per borrower |
|
10. |
Persons
with disabilities |
|
11. |
UCBs : Overdrafts
upto Rs 5,000/- under Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts,
provided the borrowers’ household annual income does not exceed Rs 100,000/-
for rural areas and Rs 1,60,000/- for non-rural areas RRBs : Overdraft
limit to PMJDY account holder upto Rs 10,000/- with age limit of 18-65 years |
|
12. |
Minority
communities as may be notified by Government of India from time to time |
1.
Agriculture
Lending to agriculture sector includes
the following
- Farm
Credit (which will include short-term crop loans and medium/long-term
credit to farmers)
- Agriculture
Infrastructure and
- Ancillary
Activities
·
A list of eligible activities under the three sub-categories is
indicated below.
|
·
Farm credit |
A. Loans to individual farmers [including Self Help Groups
(SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers,
provided banks maintain disaggregated data of such loans], directly engaged
in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry,
poultry, bee-keeping and sericulture. This will include: (i) Crop loans to farmers, which will include
traditional/non-traditional plantations and horticulture, and, loans for
allied activities. (ii) Medium and long-term loans to farmers for agriculture and
allied activities (e.g. purchase of agricultural implements and machinery,
loans for irrigation and other developmental activities undertaken in the
farm, and developmental loans for allied activities.) (iii) Loans to farmers for pre and post-harvest activities,
viz., spraying, weeding, harvesting, sorting, grading and transporting of
their own farm produce. (iv) Loans to farmers up to Rs 50 lakh against pledge/
hypothecation of agricultural produce (including warehouse receipts) for a
period not exceeding 12 months. (v) Loans to distressed farmers indebted to non-institutional
lenders. (vi) Loans to farmers under the Kisan Credit Card Scheme. (vii) Loans to small and marginal farmers for purchase of land
for agricultural purposes. B. Loans to corporate farmers, farmers' producer
organizations/companies of individual farmers, partnership firms and
co-operatives of farmers directly engaged in Agriculture and Allied
Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture up to an aggregate limit of Rs 2 crore per borrower. This will
include: (i) Crop loans to farmers which will include
traditional/non-traditional plantations and horticulture, and, loans for
allied activities. (ii) Medium and long-term loans to farmers for agriculture and
allied activities (e.g. purchase of agricultural implements and machinery,
loans for irrigation and other developmental activities undertaken in the
farm, and developmental loans for allied activities.) (iii) Loans to farmers for pre and post-harvest activities,
viz., spraying, weeding, harvesting, sorting, grading and transporting of
their own farm produce. (iv) Loans up to Rs 50 lakh against pledge/hypothecation of
agricultural produce (including warehouse receipts) for a period not
exceeding 12 months. |
|
1.2.
Agriculture infrastructure |
i) Loans for construction of storage facilities (warehouses,
market yards, godowns and silos) including cold storage units/ cold storage
chains designed to store agriculture produce/products, irrespective of their
location. ii) Soil conservation and watershed development. iii) Plant tissue culture and agri-biotechnology, seed
production, production of bio-pesticides, bio-fertilizer, and vermi
composting. For the above loans, an aggregate sanctioned limit of Rs 100
crore per borrower from the banking system, will apply. |
|
1.3.
Ancillary activities |
(i) Loans up to Rs 5 crore to co-operative societies of
farmers for disposing of the produce of members. (ii) Loans for setting up of Agriclinics and Agribusiness
Centres. (iii) Loans for Food and Agro-processing up to an aggregate
sanctioned limit of Rs 100 crore per borrower from the banking system. (iv) Bank loans to Primary Agricultural Credit Societies
(PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi
Multi-Purpose Societies (LAMPS) for on-lending to agriculture. (v) Loans sanctioned by banks to MFIs for on-lending to
agriculture sector (vi) Outstanding deposits under RIDF and other eligible funds
with NABARD on account of priority sector shortfall. |
For the purpose of computation of
8 percent target, Small and Marginal Farmers will include the following:-
- Farmers
with landholding of up to 1 hectare are considered as Marginal Farmers.
Farmers with a landholding of more than 1 hectare and upto 2 hectares are
considered as Small Farmers.
- Landless
agricultural labourers, tenant farmers, oral lessees and share-croppers.
- Loans
to Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups
of individual Small and Marginal farmers directly engaged in Agriculture
and Allied Activities, provided banks maintain disaggregated data of such
loans.
- Loans
to farmers' producer companies of individual farmers, and co-operatives of
farmers directly engaged in Agriculture and Allied Activities, where the
membership of Small and Marginal Farmers is not less than 75 per cent by
number and whose land-holding share is also not less than 75 per cent of
the total land-holding
2.
Micro, Small and Medium Enterprises (MSMEs)
The limits for investment in
plant and machinery/equipment for manufacturing / service enterprise, as
notified by Ministry of Micro, Small and Medium Enterprises, vide S.O.1642(E)
dated September 9, 2006 are as under:-
|
Manufacturing Sector |
|
|
Enterprises |
Investment in plant and machinery |
|
Micro
Enterprises |
Does
not exceed twenty five lakh rupees |
|
Small
Enterprises |
More
than twenty five lakh rupees but does not exceed five crore rupees |
|
Medium
Enterprises |
More
than five crore rupees but does not exceed ten crore rupees |
|
Service Sector |
|
|
Enterprises |
Investment in equipment |
|
Micro
Enterprises |
Does
not exceed ten lakh rupees |
|
Small
Enterprises |
More
than ten lakh rupees but does not exceed two crore rupees |
|
Medium
Enterprises |
More
than two crore rupees but does not exceed five crore rupees |
Bank loans to Micro, Small and
Medium Enterprises engaged in providing or rendering of services and defined in
terms of investment in equipment under MSMED Act, 2006, irrespective of loan
limits, are eligible for classification under priority sector, w.e.f. March 1,
2018. Bank loans to Micro, Small and Medium Enterprises, for both manufacturing
and service sectors are eligible to be classified under the priority sector as
per the following norms:
Bank loans to Micro, Small and
Medium Enterprises engaged in providing or rendering of services and defined in
terms of investment in equipment under MSMED Act, 2006, irrespective of loan
limits, are eligible for classification under priority sector, w.e.f. March 1,
2018. Bank loans to Micro, Small and Medium Enterprises, for both manufacturing
and service sectors are eligible to be classified under the priority sector as
per the following norms:
- Manufacturing
Enterprises - The Micro, Small and
Medium Enterprises engaged in the manufacture or production of goods to any
industry specified in the first schedule to the Industries (Development
and Regulation) Act, 1951 and as notified by the Government from time to
time. The Manufacturing Enterprises are defined in terms of investment in
plant and machinery.
- Service
Enterprises - Bank loans up to Rs 5
crore per unit to Micro and Small Enterprises and Rs 10 crore to Medium
Enterprises engaged in providing or rendering of services and defined in
terms of investment in equipment under MSMED Act, 2006.
- Khadi
and Village Industries Sector (KVI) - All loans to units in the KVI sector will be eligible
for classification under the sub-target of 7 percent /7.5 percent
prescribed for Micro Enterprises under priority sector.
- Other
Finance to MSMEs
- Loans
to entities involved in assisting the decentralized sector in the supply
of inputs to and marketing of outputs of artisans, village and cottage
industries.
- Loans
to co-operatives of producers in the decentralized sector viz. artisans,
village and cottage industries.
- Loans
sanctioned by banks to MFIs for on-lending to MSME sector
- Credit
outstanding under General Credit Cards (including Artisan Credit Card,
Laghu Udyami Card, Swarojgar Credit Card, and Weaver’s Card etc. in
existence and catering to the non-farm entrepreneurial credit needs of
individuals).
- Outstanding
deposits with SIDBI on account of priority sector shortfall.
- To
ensure that MSMEs do not remain small and medium units merely to remain
eligible for priority sector status, the MSME units will continue to enjoy
the priority sector lending status up to three years after they grow out
of the MSME category concerned
3. Education
Loans to individuals for
educational purposes including vocational courses upto Rs 10 lakh irrespective
of the sanctioned amount will be considered as eligible for priority sector
4. Housing
- Loans
to individuals up to Rs 35 lakh in metropolitan centres (with population
of ten lakh and above) and loans up to Rs 25 lakh in other centres for purchase/construction
of a dwelling unit per family provided the overall cost of the dwelling
unit in the metropolitan centre and at other centres should not exceed Rs
45 lakh and Rs 30 lakh respectively.
- The
housing loans to banks’ own employees will be excluded.
- Loans
for repairs to damaged dwelling units of families up to Rs 2 lakhs.
- The
loans sanctioned by banks for housing projects exclusively for the purpose
of construction of houses for Economically Weaker Sections (EWS) and Low
Income Groups (LIG), the total cost of which does not exceed Rs 10 lakhs
per dwelling unit. For the purpose of identifying the economically weaker
sections and low income groups, the family income limit is revised to Rs 3
lakhs per annum for EWS and Rs 6 lakh per annum for LIG, in alignment with
the income criteria specified under the Pradhan Mantri Awas Yojana
5.
Social infrastructure
Bank loans up to a limit of Rs 5
crore per borrower for building social infrastructure activities namely
schools, health care facilities, drinking water facilities and sanitation
facilities (including loans for construction/ refurbishment of toilets and
improvement in water facilities in the household) in Tier II to Tier VI centres
are eligible for classification under priority sector.
Bank credit to Micro Finance
Institutions (MFI) extended for on-lending to individuals/ members of SHGs/
JLGs for water and sanitation facilities is also eligible for classification as
priority sector loans under ‘Social Infrastructure’ subject to certain criteria
1. Renewable Energy
Bank loans up to a limit of Rs 15
crore to borrowers for purposes like solar based power generators, biomass
based power generators, wind mills, micro-hydel plants and for non-conventional
energy based public utilities viz. street lighting systems, and remote village
electrification. For individual households, the loan limit will be Rs 10 lakh
per borrower
Others
- Loans
not exceeding Rs 50,000/- per borrower provided directly by banks to
individuals and their SHG/JLG, provided the individual borrower’s
household annual income in rural areas does not exceed Rs 10,00,000/- and
for non-rural areas it does not exceed Rs 16,00,000/-.
- Loans
to distressed persons not exceeding Rs 10,00,000/- per borrower to prepay
their debt to non-institutional lenders.
- Overdrafts
extended by banks upto Rs 5,000/- under Pradhan Mantri Jan-DhanYojana
(PMJDY) accounts provided the borrowers household annual income does not
exceed Rs 100,000/- for rural areas and Rs 1,60,000/- for non-rural areas.
- Loans
sanctioned to State Sponsored Organisations for Scheduled Castes/
Scheduled Tribes for the specific purpose of purchase and supply of inputs
and/or the marketing of the outputs of the beneficiaries of these
organisations.
·
ii.
Bank
of Baroda
- Agricultural Finance Schemes
- Baroda Kisan Credit Card (BKCC)
- Agriclinics and Agribusiness Centers by
Agriculture Graduates
- Scheme for Financing under Agriculture
Infrastructure Fund
- Baroda Animal Husbandry and Fisheries
Kisan Credit Card (BAHFKCC) Scheme
- Scheme For Development Of Horticulture
Source: Bank of
Baroda
- Kisan Credit Card
- BOI Kisan Shatabdi krishi Vikas Card
- Agri Clinics
- Financing for Draught Animals & Carts
- Poultry Development
- Dairy Development
Source: Bank of
India
iv.
Canara
Bank
Source: Canara
Bank
- Agriculture Finance Crop Loans
- Agriculture Finance Horticulture &
Forestry Development
- IDBI Bank Dairy Loans
Source: IDBI Bank
vii.
Indian
Bank
viii.
Indian
Overseas Bank
Source: Indian
overseas Bank
Source: Punjab
National Bank
Source: UCO Bank
- Agricultural Gold Loans
- Kisan Credit Card (KCC)
- Produce Marketing Loan
- Kisan Gold Card Scheme (KGC)
- Setting up of Agri-Clinic & Agri
Business Centres
- Land Purchase Scheme
- Scoring Model for Tractor Loans
- Financing of Second Hand / Used Tractors
Scheme
- Financing Power Tillers
- Financing for Combine Harvesters
- Scheme for Financing Farm Machinery Where
Tangible Assets are Created
- Dairy Plus Scheme for Financing Dairy
Units
- Dairy Society plus Scheme, Scheme for
Financing Dairy Societies
- Broiler Plus
- Scheme to Cover Loans for General Purpose
under General Credit Card (GCC)
- SBI Krishak Uthaan Yojna
- Gramin Bhandaran Yojna Capital Investment
Subsidy Scheme for Construction / Renovation of Rural Godowns
- Scheme for Financing Private Cold Storage
/ Private Ware Houses for on lending to Farmers
- Scheme for Financing Seed Processors
- Mortgage Loan to Seed Processing Units
- Capital Investment Subsidy Scheme for
Commercial Production Units of Organic inputs Under National Project on
Organic Farming
- Scheme for Debt Swapping Of Borrowers
- Arthiyas plus Scheme
- Minor Irrigation Schemes
- Finance to Horticulture
- Scheme for Financing Micro Finance
Institutions (MFIs) / Non-Government Organisation (NGOs)
- Sanjeevani
- Krishi Kalyan
- Financing for Organic Farming
- Financing JLG of Tenent Farmers
- Lead Bank Scheme
- Business Correspondent (BC) Arrangement
- New Tractor Loan Scheme
- Rural Self Employment Training Institutes
(RSETIs)
COMMENTS