After the sops announced for farmers by Interim Finance Minister Piyush Goyal in Budget 2019, RBI has extended further relief to the distressed farmer community of the country.
The central bank has increased the limit of collateral-free agriculture loans which is currently set at up to Rs. 1 lakh. This limit was last fixed in the year 2010. The RBI in its Statement on Developmental and Regulatory Policies released today said, "Keeping in view the overall inflation and rise in agriculture input costs since then, it has been decided to raise the limit for collateral-free agriculture loans from Rs 1 lakh to Rs 1.6 lakh. This will enhance coverage of small and marginal farmers in the formal credit system". The circular to this effect will be issued shortly, RBI added.
In the interim Budget 2019, the centre rolled out a scheme called Pradhan Mantri Kisan Samman Nidhi Yojana with a planned outlay of Rs. 75,000 crore that will provide income support to marginal farmers of Rs. 6000 on an annual basis.