PRIORITY SECTOR LENDING-TARGETS AND CLASSIFICATION – REVISION OF LIMITS

Notification:RBI/2012-13/487
RPCD.CO.Plan. BC 72/04.09.01/2012-13

Dated: 03/05/2013

Please refer to paragraph 65 of the Monetary Policy Statement for the year 2013-14. The following limits under priority sector stand revised upward with effect from April 01, 2013.

1. Agriculture

(i) The limit of loans to farmers against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months stands increased from Rs. 25 lakh to Rs. 50 lakh both under direct and indirect agriculture.

[Effect on July 20, 2012 circular: Paragraph III 1.1 (iv) and Paragraph 1.2.1 (iv) would stand amended accordingly]

(ii) The limit of loans to dealers/sellers of fertilizers, pesticides, seeds, cattle feed, poultry feed, agricultural implements and other inputs has been raised to Rs. 5 crore per borrower from Rs.1 crore.

[Effect on July 20, 2012 circular: Paragraph III 1.2.2 (i) would stand amended accordingly]

2. Micro and Small Enterprises

The limit of bank loans to Micro and Small Service Enterprises (MSEs) engaged in providing or rendering of services has been increased from Rs. 2 crore to Rs. 5 crore per borrower/unit, provided they satisfy the investment criteria for equipment as defined under MSMED Act, 2006.

[Effect on October 17, 2012 circular on priority sector: Paragraph 2 would stand amended accordingly]

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769

Website:- www.caaga.co.in