RBI enhances Loan limit under Priority Sector Lending against eNWR/NWR from Rs.50 lakh to Rs.75 lakh

Current GK ( Master) Banking Awareness

The Reserve Bank of India has enhanced the loan limit from Rs 50 lakh to Rs 75 lakh per borrower against the pledge/hypothecation of agricultural produce backed by NWRs/(e-NWRs) issued by warehouses registered and regulated by WDRA.
This has been done to encourage farm credit to individual farmers against pledge/hypothecation of agricultural produce and leverage the inherent safety of Negotiable Warehouse Receipts (NWRs)/electronic-NWRs(e-NWRs) issued by the warehouses registered and regulated by Warehousing Development and Regulatory Authority (WDRA).
The Priority Sector loan limit backed by other Warehouse Receipts will continue to be Rs.50 lakh per borrower.