Question
What is the new collateral-free agricultural loan limit
set by the RBI effective from January 1, 2025?Solution
The Reserve Bank of India (RBI) has increased the collateral-free agricultural loan limit from ₹1.6 lakh to ₹2 lakh per borrower, effective from January 1, 2025. This decision aims to provide better access to financial resources for small and marginal farmers, addressing rising input costs and inflation.
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