CATEGORIES UNDER
PRIORITY SECTOR
i.
Agriculture
ii.
Micro,
Small and Medium Enterprises (MSMEs)
iii.
Education
iv.
Housing
v.
Social
Infrastructure
vi.
Renewable
Energy
vii.
Others
Targets /Sub-targets for Priority
sector
Categories
|
Targets
(Of
Total Outstanding*)
|
Total
Priority Sector
|
75%
|
Agriculture
|
18%
|
Small
and Marginal Farmers
|
8%
|
Micro
Enterprises
|
7.5%
|
Weaker
Sections
|
15%
|
Lending
to Medium Enterprises, Social Infrastructure and Renewable Energy shall be
reckoned for priority sector achievement only up to 15 per cent of total
outstanding.
*Total
outstanding as on the corresponding date of the preceding year.
Description of the eligible
categories under priority sector
1. Agriculture
(i)
Farm Credit (short-term
crop loans and medium/long-term credit to farmers)
(ii)
Agriculture Infrastructure and
(iii)
Ancillary Activities.
Farm credit
|
A. Loans to individual farmers
[including SHGs or JLGs], directly engaged in Agriculture and Allied
Activities. This will include:
(i)
Crop loans to farmers and loans for allied
activities.
(ii)
Medium and long-term loans to farmers for
agriculture and allied activities (e.g. purchase of agricultural
implements and machinery, loans for irrigation and other developmental
activities undertaken in the farm, and developmental loans for allied
activities.)
(iii)
Loans to farmers for pre and post-harvest
activities and transporting of their own farm produce.
(iv)
Loans to
farmers up to Rs.50 lakh against pledge/hypothecation of agricultural produce
for a period not exceeding 12 months.
(v)
Loans to distressed farmers indebted to
non-institutional lenders.
(vi)
Loans to farmers under Kisan Credit Card Scheme.
(vii)
Loans to small and marginal farmers for purchase
of land for agricultural purposes.
B. Loans to
corporate farmers, farmers' producer organizations/companies of individual
farmers, partnership firms and co-operatives of farmers directly engaged in
Agriculture and Allied Activities. This will include:
(i)
Crop loans to farmers and loans for allied
activities.
(ii)
Medium and long-term loans to farmers for
agriculture and allied activities (e.g. purchase of agricultural
implements and machinery, loans for irrigation and other developmental
activities undertaken in the farm, and developmental loans for allied
activities.)
(iii)
Loans to farmers for pre and post-harvest
activities and transporting of their own farm produce.
(iv)
Loans up to 50 lakh against pledge/hypothecation
of agricultural produce for a period not exceeding 12 months.
|
Agriculture infrastructure
|
(i)
Loans for construction of storage facilities to
store agriculture produce/products, irrespective of their location.
(ii)
Soil conservation
and watershed development.
(iii)
Plant tissue culture and agri-biotechnology, seed
production,production of bio-pesticides, bio-fertilizer, and vermi
composting.
For
the above loans, an aggregate sanctioned limit of ₹100 crore per borrower, will apply
|
Ancillary activities
|
(i)
Loans up to
5 crore to co-operative societies of farmers for disposing of the
produce of members.
(ii)
Loans for setting up of Agriclinics and
Agribusiness Centres.
(iii)
Loans for Food and Agro-processing up to 100 crore
per borrower.
(iv)
Loans to Custom Service Units managed by
individuals, institutions or organizations who maintain a fleet of tractors, bulldozers,
well-boring equipment, threshers, combines, etc., and undertake farm work for
farmers on contract basis.
|
Small
and Marginal Farmers will include following:-
-
Landholding
of up to 1 hectare - Marginal Farmers
-
More
than 1 hectares and up to 2 hectares - Small Farmers.
-
Landless
agricultural laborers, tenant farmers, oral lessees and share-croppers.
-
Loans
to Self Help Groups (SHGs) or Joint Liability Groups (JLGs), of individual
Small and Marginal farmers directly engaged in Agriculture and Allied
Activities.
-
Loans
to farmers’ producer companies, and co-operatives directly engaged in
Agriculture and Allied Activities, where the membership of Small and Marginal
Farmers is not less than 75 per cent by number and land-holding share of the
total land-holding.
Manufacturing
Sector
|
|
Enterprises
|
Investment in plant and
machinery
|
Micro Enterprises
|
Does not exceed Rs.25 lakh
|
Small Enterprises
|
More than Rs.25 lakh but does not exceed
Rs.5 Cr
|
Medium Enterprises
|
More than Rs.5 Cr but does not exceed Rs.10
Cr
|
Service
Sector
|
|
Enterprises
|
Investment in plant and
machinery
|
Micro
Enterprises
|
Does
not exceed Rs.10 lakh
|
Small
Enterprises
|
More
Rs.10 lakh but does not exceed Rs.2 Cr
|
Medium
Enterprises
|
More
than Rs.2 Cr but does not exceed Rs.5 Cr
|
Bank loans to
Micro, Small and Medium Enterprises, for both manufacturing and service sectors
are eligible to be classified under the priority sector as per the following
norms:
Manufacturing Enterprises
The Micro, Small
and Medium Enterprises engaged in the manufacture or production of goods specified
in the first schedule to the Industries (Development and Regulation) Act, 1951
and as notified by the Government. The Manufacturing Enterprises are defined in
terms of investment in plant and machinery.
Service Enterprises
Bank loans up to
5 crore per unit to Micro and Small
Enterprises and
10 crore to Medium Enterprises engaged in
rendering of services and defined in terms of investment in equipment under MSMED
Act, 2006.


Khadi and Village Industries Sector
(KVI)
All loans to
units in the KVI sector will be eligible for classification under the
sub-target of 7 per cent/7.5 per cent prescribed for Micro Enterprise.
(i)
Loans
to entities involved in the supply of inputs to and marketing of outputs of
artisans, village and cottage industries.
(ii)
Loans
to co-operatives of artisans, village and cottage industries.
(iii)
Credit
outstanding under General Credit Cards (including Artisan Credit Card, Laghu
Udyami Card, Swarojgar Credit Card, and Weaver’s Card etc. catering to the
non-farm entrepreneurial credit needs of individuals).
MSME units will
continue to enjoy the priority sector lending status up to three years after
they grow out of the MSME category concerned.
Overdrafts under PMJDY:
Overdrafts upto
5,000/- under PMJDY will also qualify for target of Micro Enterprises and
Weaker Section under Priority Sector Lending.
3. Education
Loans for
educational purposes including vocational courses upto 10 lakh irrespective of
the sanctioned amount.
4. Housing
(i)
Loans
up to 20 lakh for purchase/construction, per family provided the overall cost
of the dwelling unit is not more than 25 lakh. The housing loans to banks’ own
employees will be excluded.
(ii) Loans for
repairs up to 2 lakh.
(iii)
Loans
to any government agency for construction of dwelling units or for clearance
and rehabilitation of slum dwellers subject to a ceiling of 10 lakh per unit.
(iv) Loans sanctioned for housing
projects exclusively for economically weaker sections and low income groups,
the total cost of which does not exceed 10 lakh per dwelling unit. Economically
weaker sections and low income groups is where the family income does not
exceed 2 lakh per annum, irrespective of the location.
5. Social Infrastructure
oans up to 5
crore per borrower for building schools, health care facilities, drinking water
facilities, sanitation facilities, construction/refurbishment of household
toilets and household level water improvements in Tier II to Tier VI centres.
6. Renewable Energy
Bank loans up to
a limit of
15 crore for solar based power generators,
biomass based power generators, wind mills, micro-hydel plants and for
non-conventional energy based public utilities viz. street lighting systems,
and remote village electrification. For individual households, the limit will
be
10 lakh per borrower.


7. Others
Loans
upto 50,000/- per borrower to individuals and their SHG/JLG, provided the borrower’s
household income does not exceed 100,000/- in rural areas and 1,60,000/- in
non-rural areas.
Loans to distressed persons upto 100,000/-
to prepay their debt to non-institutional lenders.
Loans
sanctioned to State Sponsored Organisations for Scheduled Castes/ Scheduled
Tribes for the specific purpose of purchase and supply of inputs and/or the
marketing of the outputs of the beneficiaries.
Weaker Sections
No.
|
Category
|
1.
|
Small
and Marginal Farmers
|
2.
|
Artisans,
village and cottage industries where individual limits do not exceed 1lakh
|
3.
|
Beneficiaries
under Government Sponsored Schemes such as NRLM, NULM and (SRMS)
|
4.
|
SC
& ST
|
5.
|
Beneficiaries
of DRI scheme
|
6.
|
Self
Help Groups
|
7.
|
Distressed
farmers indebted to non-institutional lenders
|
8.
|
Distressed
persons other than farmers, with loan amount not exceeding 1 lakh per borrower to prepay their debt
to non-institutional lenders
|
9.
|
Individual
women beneficiaries up to 1 lakh per
borrower
|
10.
|
Persons
with disabilities
|
11.
|
Overdrafts upto 5,000/- under PMJDYs, provided the
borrowers’ household annual income does not exceed 100,000/- for rural areas and 1,60,000/- for non-rural areas
|
12.
|
Minority communities as may be
notified by Government of India except in states where they are in majority (Jammu
& Kashmir, Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep)
|
Monitoring:
The
data on priority sector advances has to be furnished to NABARD at quarterly and
annual intervals.
Other Guidelines
RRBs
can issue Inter Bank Participation Certificates (IBPCs) to Scheduled Commercial
Banks in respect of their priority sector advances in excess of 75 per cent of
their outstanding advances.
Common guidelines for priority
sector loans
1. Rate of interest
As
per directives issued by RBI.
2. Service charges
No service
charges should be levied on loans up to
25,000. In case of SHGs/JLGs, the loan limit
shall be applicable per member.

3. Receipt,
Sanction/Rejection/Disbursement Register
A record should
be maintained, wherein the date of receipt, sanction/rejection/disbursement
with reasons thereof, etc., should be recorded.
4. Issue of Acknowledgement of Loan
Applications
Banks should
provide acknowledgement for loan applications received. Banks should prescribe
a time limit within which the bank communicates its decision.
Based on RBI
Circular dt 03/12/15. Please visit www.rbi.org.in for any
further clarification if required….. Poppy
No comments:
Post a Comment