What changed
Private sector banks must now report agricultural lending data monthly, as on the last reporting Friday, within seven days of the following month, using a specified format.
What it means for you
This increases reporting frequency for banks, requiring tighter internal data tracking and submission processes. It also signals heightened government focus on meeting the 18% agricultural lending target.
What you must do
- Set up monthly data collection for agricultural advances as on the last reporting Friday.
- Submit the data in the prescribed format to RBI by the 7th of the following month.
- Review current agricultural lending portfolio and take steps to increase credit flow to meet the 18% target by end of 2004-05.
Who it affects
Private sector banks
What is the deadline for submitting the monthly agricultural lending data?
The data must be submitted on or before the seventh day of the month following the reporting month.
What is the target for agricultural lending as a percentage of net bank credit?
Scheduled commercial banks are required to achieve a target of 18% of net bank credit towards lending to agriculture.