Indian Economy News

RBI to support farm produce aggregation to facilitate credit flow

  • IBEF
  • July 13, 2015

Mumbai: With a view to facilitate credit flow in the agriculture sector, the Reserve Bank of India (RBI) will support arrangements for aggregating farm produce which will help the foreign lenders to meet their PSL targets. It is a challenge for foreign banks to meet the PSL targets, especially in lending to the agriculture sector. Aggregating farm produce through Farmer Producer Organisations (FPOs) would give foreign lenders, an opportunity to lend to the agriculture sector, said RBI Deputy Governor Mr H R Khan. FPO will help in bringing a professional attitude among the farmers who can then form groups and register as a company that will give technical and financial assistance to its members. Prime Minister Mr Narendra Modi had asked RBI to prepare a 20-year roadmap for financial inclusion and asked banks to be considerate in giving loans to poor farmers.

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