new Delhi. The Reserve Bank of India is now going to provide relief to the farmers. Under one of the rules, farmers will be able to easily get loans for setting up solar plants and compressed biogas plants. RBI has changed the rules for priority sector lending. This will benefit small and marginal farmers the most.
While issuing new guidelines, RBI said that these steps have been taken to remove regional disparities in loans given under priority sector. Now up to Rs 50 crore start-ups have included works like setting up solar plants and compressed biogas plants. The new loan guidelines for the primary sector will be for all commercial banks. The new PSL guidelines will benefit farmers who have difficulty in taking loans. This will also increase the debt for renewable energy, health infrastructure.
According to RBI, this initiative will also help to increase credit flow in the renewable energy and health infrastructure sector. Because the loan limit under it has been doubled. The RBI has made these changes in the guidelines based on the recommendations of the UK Sinha-led committee. The committee was formed to provide loans to micro, small and medium enterprises.