In view of the rising inflation and agricultural costs, the Reserve Bank of India (RBI) has decided to increase the limit of loans given to small farmers without collateral. On Friday, RBI Governor Shaktikanta Das said that now small farmers will be able to take loans up to Rs 2 lakh without any collateral. Currently this limit is Rs 1.6 lakh. From the new year, all banks will have to follow this instruction of RBI.
Loans Will Be Easily Available In Villages Also
Now Small Finance Banks (SFBs) will be able to give loans through UPI. The advantage of this will be that even in villages, villagers will be able to get loans easily through UPI. SFB has more reach in villages. SFB did not have this facility yet. According to RBI, the limit of loan without collateral for farmers from the year 2019 was Rs 1.6 lakh. Before that this limit was Rs one lakh.
Plan To Improve The Performance Of The Agriculture Sector
This decision of RBI related to the benefit of crores of farmers is also important because the performance of agriculture should be better in any case to strengthen the GDP growth rate in the current financial year. In the second quarter of the current financial year, the agriculture sector grew by 3.5 percent while the growth rate of manufacturing was two percent. Rural demand depends on a good crop and GDP can be expected to strengthen in the third and fourth quarters only with the increase in rural demand.
AI Based Solution To Prevent Digital Fraud
The RBI governor said that the Reserve Bank is continuously making efforts in collaboration with other banks to prevent digital and cyber fraud. In this direction, the use of AI has been started to detect mule accounts. Das said that mule accounts are used for cyber fraud. The amount of fraud comes in the mule account only. Cyber fraud can be reduced significantly if it is identified in banks.
Work On Mule Account Started In Two Big Banks
Competitions are being organised continuously for MuleHunter Solution to detect mule accounts. Reserve Bank Innovation Hub and banks are working together in this direction. Work to identify mule accounts with the help of AI has started in two big banks.
