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Temporary Liquidity Support for Agricultural Operations Enhanced

Current · Source: Reserve Bank of India · RBI/2008-09/308 · issued 05 Dec 2008 · ~1 min read
Quick answerRBI raised the temporary liquidity support limit for scheduled banks to Rs. 7,500 crore and for NABARD to Rs. 2,500 crore, effective December 6, 2008, extended until December 15, 2008, to ease agricultural financing.
The rule, in the simplest words
How it plays out — a real example

An agri & priority-sector lending officer in Indore checks the new RBI rule and sees her bank can now borrow up to Rs. 7,500 crore for farm loans. She uses this extra money to approve a crop loan for a farmer who needs cash quickly before the December 15 deadline, making sure the farmer gets the funds on time.

What changed

The liquidity support limits under Section 17(3-B) of the RBI Act for scheduled banks were increased to Rs. 7,500 crore, and for NABARD under Section 17(4-E) to Rs. 2,500 crore. The facility's validity was extended to December 15, 2008, from earlier deadlines.

What it means for you

Banks and NABARD get higher temporary funding to meet agricultural credit needs during the peak season, reducing liquidity pressure. This supports timely disbursement of crop loans and other farm finance, helping maintain rural cash flow.

What you must do

Who it affects

All scheduled banks, NABARD, Agricultural loan borrowers

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new liquidity support limit for scheduled banks?

The limit has been revised to Rs. 7,500 crore, effective from December 6, 2008, under Section 17(3-B) of the RBI Act.

Until when is this facility available?

The temporary liquidity support is extended up to December 15, 2008.

Does this circular change any other conditions from previous circulars?

No, all other conditions from the earlier circulars dated October 15, 2008 and November 3, 2008 remain unchanged.

📜 Read the original circular — full text as issued by RBI
RBI/2008-09/308 RPCD.PLFS.No. BC. 73 /05.04.02/2008-09 December  5, 2008 The Chairmen/Chief Executives of all Scheduled  Banks / NABARD Dear Sirs, Temporary liquidity support for financing agricultural operations Please refer to our circulars RPCD.PLFS.No.BC.45 /05.04.02/2008-09 dated October 15, 2008 , and RPCD.PLFS. No. BC. 60 /05.04.02/2008-09 dated November 3, 2008 , on the captioned subject. 2. Reserve Bank has since modified the facility of temporary liquidity support for financing agricultural operations, as mentioned therein as under: a) The limits of the liquidity support availed by scheduled banks under Section 17 (3-B) of RBI Act 1934 and  by NABARD under Section 17 (4-E) of RBI Act 1934 has been revised to Rs. 7500 crore and Rs. 2500 crore respectively with effect from December 6, 2008. b) The facility has been extended for a period up to December 15, 2008 . 3. All other conditions of the above circulars remain unchanged. Yours faithfully, (G. Srinivasan) Chief General Manager – in - Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/308 · issued 05 Dec 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled banks, NABARD, Agricultural loan borrowers), your first concrete step on “Temporary Liquidity Support for Agricultural Operations Enhanced” is: “Update internal limits to reflect the new Rs. 7,500 crore cap for liquidity support under Section 17(3-B).” (RBI issued this 05 Dec 2008).

  1. Circular: RBI/2008-09/308 -- Temporary Liquidity Support for Agricultural Operations Enhanced
  2. Issued: 05 Dec 2008
  3. Action required: Update internal limits to reflect the new Rs. 7,500 crore cap for liquidity support under Section 17(3-B).
  4. Action required: Ensure agricultural loan disbursements align with the extended facility period up to December 15, 2008.
  5. Action required: Monitor utilization of the enhanced limit to avoid breaching the revised ceiling.
  6. Action required: Coordinate with NABARD for any joint financing arrangements under the revised Rs. 2,500 crore limit.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4683&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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