RBI/ 2004-2005/240
RPCD. PLFS. BC. No. 47 /05.05.13/2004-05
October 26,2004
The Chairman / Managing Director/ Chief Executive Officer
Indian Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir,
Lending to small and marginal farmers
Please refer to paragraph No. 79 of the Governor’s Statement
on Mid-Term Review of the Annual Policy for the year 2004-05 (copy
of paragraph enclosed). As recommended by the Advisory Committee on Flow
of Credit to Agriculture and Related Activities from the Banking System (Vyas
Committee), in order to improve flow of credit to small and marginal farmers,
the banks should make efforts to increase their disbursements to small and marginal
farmers to 40 per cent of their direct advances under Special Agricultural Credit
Plans (SACP) by March 2007.
2. You are, therefore, requested to take necessary steps for
improving flow of credit to the small and marginal farmers under the SACP mechanism.
Data in respect of lending to small and marginal farmers should be furnished
separately in the half-yearly statements on disbursements under SACP.
3. Please acknowledge receipt.
Yours faithfully,
(G.Srinivasan)
Chief General Manager
Encl : As above
Priority Sector Lending
Enhanced Lending to Small and Marginal Farmers
79. As recommended by the Vyas Committee, in order to improve
flow of credit to small and marginal farmers, it is proposed that:
- Banks should make efforts to increase their disbursements to small and marginal
farmers to 40 per cent of their direct advances under special agricultural
credit plans (SACP) by March 2007.