RBI Tightens Rules for Gold-Backed Farm Loans as PSL
The Reserve Bank of India has proposed stricter rules for classifying gold-backed farm loans as priority sector lending (PSL). Banks must verify borrowers' actual agricultural credit needs against district finance scales, document field inspections, crop hypothecation, and proof of agricultural activity by landless cultivators. Failure to comply will reclassify loans as more expensive gold loans.
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