RBI to set up working group for agricultural loan issues1 min read . Updated: 07 Feb 2019, 02:29 PM IST
- RBI also raised the limit for collateral–free farm loans to 160,000 rupees
- RBI unexpectedly lowered interest rates on Thursday
Bengaluru: The Reserve Bank of India on Thursday said it would set up an internal working group to examine issues pertaining to agricultural loans, including regional disparity and extent of coverage.
The move comes days after India's government pledged 750 billion rupees ($10.50 billion) to support poor farmers and reduced the tax burden for the middle class, as it looked to rally support from voters with the final budget before a general election.
The RBI unexpectedly lowered interest rates on Thursday and shifted its stance to "neutral" from "calibrated tightening" to boost a slowing economy after a sharp fall in the inflation rate.