Mumbai: The Reserve Bank of India (RBI) has increased the limit for collateral-free agriculture loans from Rs.1.6 lakh to Rs.2 lakh per borrower. This was announced by RBI governor during his bi-monthly credit policy announcement on Friday.
“Collateral-free Agriculture Loan – Enhancement of Limit 31. The limit for collateral-free agriculture loans was last revised in 2019. Taking into account the rise in agricultural input costs and overall inflation, it has been decided to increase the limit for collateral-free agriculture loans from Rs.1.6 lakh to Rs.2 lakh per borrower. This will further enhance credit availability for small and marginal farmers” he said.
Pre-sanctioned Credit Lines through UPI – Extending the Scope to Small Finance Banks
Credit line on UPI was launched in September 2023 and was made available through Scheduled Commercial Banks (SCBs). It has now been decided to permit Small Finance Banks also to extend pre-sanctioned credit lines through the UPI. This will further deepen financial inclusion and enhance formal credit, particularly for ‘new to credit’ customers.
AI Solutions to Identify Mule Bank Accounts – MuleHunter.AITM
As part of the Reserve Bank’s continued efforts to prevent and mitigate digital frauds, an innovative AI / ML based model, namely, MuleHunter.AITM has been developed by the Reserve Bank Innovation Hub (RBIH), Bengaluru. This will help the banks to deal with the issue of mule bank accounts expeditiously and reduce digital frauds.
Introduction of Podcast Facility as an Additional Medium of Communication
Over the years, the Reserve Bank has expanded its communication toolkit and techniques to enhance transparency and better connect with the people. In continuance of this endeavour, the Reserve Bank proposes to add ‘podcasts’ to its communication toolkit for wider dissemination of information.