RPCD.PLFS. BC. No. 85/05.04.02/2009-10
June 18, 2010
The Chairman /Managing Director/ Chief Executive Officer
All Scheduled Commercial Banks (including RRBs) and Local Area Banks
Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements
Please refer to our circular RPCD.Plan. BC. No. 87/04.09.01/2003-04 dated May 18, 2004 on the captioned subject.
2. On the basis of representations received seeking enhancement of limits, it has been decided that banks may waive margin/security requirements for agricultural loans from the existing level of Rs. 50,000/- to Rs. 1,00,000/- with immediate effect. Para 3 of our above circular, therefore, stands suitably modified.
3. All other conditions of the above circular remain unchanged.
4. You are requested to give adequate publicity to this change and instruct your controlling offices/branches to implement the same immediately.
5. Please acknowledge receipt.
Chief General Manager