Govt, RBI Ensure Seamless Rural Credit Flow, Boost Agriculture & SHGs

• Finance Ministry confirms government and RBI measures ensure uninterrupted credit flow for rural development and SHGs.
• RBI maintains sufficient liquidity in the banking system to meet productive requirements, including the rural sector.
• Priority Sector Lending (PSL) guidelines and Ground Level Agriculture Credit (GLC) targets scale up KCC coverage and institutional credit to farmers.
• Commercial banks must allocate at least 18% of ANBC/CEOBSE to agriculture, with 10% for Small and Marginal Farmers.
• Collateral-free short-term agricultural loan limit raised from ₹1.60 lakh to ₹2.00 lakh per borrower by RBI, effective January 1, 2025.