look news india
Ahmedabad: The general public did not benefit from the last monetary policy of the calendar year of RBI. RBI has given a Christmas gift to the banks by cutting CRR and has also tried to support the economy as much as possible.
The Reserve Bank has kept interest rates unchanged for the 11th consecutive time, but there is good news for farmers in this MPC meeting. Governor Das has made a big announcement for the farmers taking loans from banks. The Reserve Bank of India has increased the limit of collateral free agricultural loan i.e. loan without any guarantee to Rs. Work worth Rs 2 lakh has been done. Till now, farmers used to get loans up to Rs 1.60 lakh without any guarantee, which has now been increased to Rs 40,000.
If we look at the past, earlier in 2019 the limit of cholesterol free agricultural loan was increased to Rs 1.60 lakh. In 2010, RBI had announced a mortgage-free loan of Rs 1 lakh to small farmers, which has been increased to Rs 1.60 lakh in 2019 and now to Rs 2 lakh.
With the increase in UPI credit line, it will become easier for SMEs to get loans.
Along with the December monetary policy, the Reserve Bank of India has made another major announcement to increase the scope of UPI credit line. Shaktikanta Das said in a press release after the MPC meeting that the UPI-based loan service launched last year has received a significant response.
It has been decided to further expand this credit line in future. According to the new system introduced in September, 2023, only scheduled commercial banks could provide UPI-based credit lines, but today RBI has also allowed small finance banks to offer loans on UPI. In such a situation, the scope of loans to small and medium enterprises will increase and new avenues of business have opened up for banks too. Financial techno platforms including Paytm, Navi will also benefit from this decision.
