- RBI has announced to increase the limit of collateral free agricultural loans from Rs. one lakh to Rs. 1.6 lakh.
- RBI Governor Shaktikanta Das on February 7, 2019 announced this decision in his policy statement.
- Addressing the post monetary policy announcement in Mumbai , Mr. Das said the decision has been taken in view of the overall inflation and rise in the agricultural input costs since 2010 when the limit was last revised. Mr. Das said this move will enhance coverage of small and marginal farmers in the formal credit system.
- In his maiden bi-monthly policy review, the Monetary Policy Committee headed by Mr. Das reduced the policy repo rate by 25 basis points from 6.5 percent to 6.25 percent and also changed the policy stance from calibrated tightening to neutral.
- The RBI Governor said he expects banks to transmit the rate cut benefit to customers and will have an interaction with all the banks in this regard within the coming fortnight.
