Which of the following is indirect finance in agriculture under the priority sector?

Loans to State Electricity Boards (SEBs) are treated as indirect agricultural finance at present. Loans to the National Cooperative Development Corporation (NCDC) for on- lending to the cooperative sector for purposes coming under the priority sector will be treated as indirect finance to agriculture for the present.

What are direct and indirect finance to agriculture?

Any loan to agriculture and allied sector is called farm credit. When the borrower is directly responsible for its repayment to the lending agency, it is direct farm credit. So funds availed by fertilizer dealers, state corporations, FCI, warehouses will come under indirect creditor to agriculture.

What is priority sector target of direct & indirect agriculture for domestic banks?

However, all agricultural advances under the categories ‘direct’ and ‘indirect’ will be reckoned in computing performance under the overall priority sector target of 40 per cent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

What are the eligible priority sector categories under agricultural sector?

The categories under priority sector are as follows:

• Agriculture.
• Micro, Small and Medium Enterprises.
• Export Credit.
• Education.
• Housing.
• Social Infrastructure.
• Renewable Energy.
• Others.

Is MSME a priority sector?

All bank loans to MSMEs conforming to the above guidelines qualify for classification under priority sector lending. Detailed guidelines on lending to the Micro, Small and Medium enterprises are available in our Master Direction FIDD. MSME & NFS.

What is priority sector and non priority sector?

Abstract: Priority sector lending is intended to provide institutional credit to those sectors and segments for. which it is difficult to get credit. Non-Priority Sector lending is the sector towards which financial institutions are always ready to lend credit.

What do you mean by agricultural finance what are the various sources of agricultural finance in India?

Sources of agricultural credit can be broadly classified into institutional and non- institutional sources. Non-Institutional sources include moneylenders, traders and commission agents, relatives and landlords, but institutional sources include co- operatives, commercial banks including the SBI Group, RBI and NABARD.

What is agri PSL?

Targets under priority sector lending (PSL) for Agriculture sector categories are as follows : – Advances to Agriculture Sector: 18 percent of Adjusted Net Bank Credit. The lending to agriculture sector will include : – Farm Credit (Agriculture and Allied Activities), – Lending for Agriculture Infrastructure and.

What is the target under lending to agriculture?

The applicable target for lending to the non-corporate farmers for FY 2021-22 will be 12.73\% of ANBC or CEOBE whichever is higher. All efforts should be made by banks to reach the level of 13.5 percent of ANBC (erstwhile target for direct lending to agriculture sector).

What is priority sector lending in MSME?

Priority sector lending includes only those sectors as part of the priority sector, that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises.

What is non priority sector lending?

Non-Priority Sector lending is the sector towards which financial institutions are always ready to lend credit. It attracts finance every time. It covers all the remaining sectors which are other than PSL.