RBI increases limit on collateral free agriculture loans to Rs 1.6 lakh


RBI has announced increase in the limit on collateral-free agriculture loans to Rs 1.6 lakh from Rs 1 lakh.This step is taken by RBI to increase the liquidity in the farming sector, particularly among small and marginal farmers. In 2010, the collateral-free limit for crop loans and term loans was hiked from Rs 50,000 to Rs 1 lakh.But his step can also increase the NPA(Non performing assests) of Banks

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