Agriculture credit of Rs 8,77,527 crore advanced in FY16

The Lok Sabha on March 24, 2017 discussed the disbursal of a total of Rs 8,77,527 crore agricultural credit in FY16 and Rs 8,45,328 crore in FY15. 

While the central government, Reserve Bank of India and the National Bank for Agriculture and Rural Development have also come up with several provisions for hassle-free crop loan disbursal to small and marginal farmers as well as landless labourers. 

Whereas, according to RBI directions, domestic commercial banks must lend 18 per cent of the adjusted net bank credit to off balance sheet exposure, and the higher credit  to the agricultural sector. 

While a sub-target of 8 per cent has also been prescribed for lending credit to small and marginal farmers as well as share croppers.

However, regional rural banks are directed to give a credit of 18 per cent of their total outstanding advances towards agriculture.

The government decides the agriculture credit sanction targets for the banking sector every year, while the banks have been consistently surpassing the targets set each year.