The Reserve Bank of India's (RBI) recent decision to raise the limit on collateral-free agriculture loans was likely taken to ease the stress being faced by banks in their farm loan portfolios over the past two quarters, and to nudge them to get their books in order.
The RBI on 6 December notified banks to waive collateral security and margin requirements for agriculture loans, including loans for allied activities, up to ₹2 lakh per borrower, from ₹1.6 lakh earlier. The RBI had last hiked the limit from ₹1 lakh to ₹1.6 lakh in February 2019.
The increase in the limit of collateral-free farm loan will allow farmers and small borrowers to borrow more money, and also free up some of their collateral parked with banks, improving their repayment ability at a time when banks' small-ticket loan books are facing stress, experts said.
Denne historien er fra December 19, 2024-utgaven av Mint New Delhi.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 19, 2024-utgaven av Mint New Delhi.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'Adani foray into cement drives deep discounts'
Competition in India's cement sector heated up with the entrance of the Adani Group in September 2022, top manufacturers bumped up discounts to maintain market share, according to a report from British wealth manager Investec.
Capex flexibility tops states' budget wishlist
Kerala, Punjab call for special financial packages, higher borrowing limits
Tata Steel's Dutch plant gets warning
Tata Steel Netherlands will face fines of almost €27 million if it doesn't take measures within eight weeks
Banks win SC relief on 30% credit interest cap
The Supreme Court on Friday overturned the National Consumer Disputes Redressal Commission (NCDRC)'s 2008 decision to cap interest rates on late credit card bill payments at 30% per annum, bringing relief to lenders that had appealed the consumer forum's ruling.
Claims of Reliance Infratel's indirect creditors upheld
The apex court upheld ₹10,952 crore claims by four indirect creditors of Anil Ambani-led RCom's tower biz
Leave a movie midway, and get some money back
PVR Inox's move is part of efforts to widen audience base and improve movie-going frequency
Pushpa 2 most-watched film of 2024, Coldplay hot
Nostalgia also took centre stage with re-releases like Kal Ho Naa Ho, Rockstar and Laila Majnu still drawing viewers
Bombay HC upholds Adani's bid to develop Dharavi slum
The project gained momentum in 2016 under the Bharatiya Janata Party-Shiv Sena led govt
TKIL in talks with oil, steel cos for green hydrogen plants
TKIL aims for 100 MW electrolyser capacity by 2025 and has allocated ₹1,500-2,000 crore
Harsh Jain LIVING THE DREAM
The co-founder and CEO of Dream Sports talks about the correlation between academic mediocrity and success, setting the culture at the organisation, and the boom in fantasy sports in India
