📷 Image: Wikimedia Commons / Vyacheslav Argenberg
Agriculture
RBI Proposes Stricter Verification for Farm Loans and Revised PSL Norms
✍️ Tripuratimes
🗓 08 Nov 2026, 04:38 AM
👁 2
The Reserve Bank of India has introduced new guidelines to tighten the verification process for farm loans and to recalibrate the calculation of the Priority Sector Lending (PSL) target for banks.
The Reserve Bank of India (RBI) has unveiled a set of revised guidelines aimed at enhancing the verification procedures for farm loans. The new framework seeks to ensure that agricultural credit is disbursed only to genuine and eligible farmers, thereby reducing the risk of misappropriation.
In addition to tightening loan verification, the RBI has also proposed changes to the calculation methodology for the Priority Sector Lending (PSL) target. The revised norms aim to provide a more accurate reflection of the actual credit needs of the agriculture sector.
Banking institutions will be required to adopt the updated verification protocols and adjust their PSL calculations accordingly. The RBI expects these measures to improve the quality of agricultural lending and strengthen the overall financial health of the sector.
In addition to tightening loan verification, the RBI has also proposed changes to the calculation methodology for the Priority Sector Lending (PSL) target. The revised norms aim to provide a more accurate reflection of the actual credit needs of the agriculture sector.
Banking institutions will be required to adopt the updated verification protocols and adjust their PSL calculations accordingly. The RBI expects these measures to improve the quality of agricultural lending and strengthen the overall financial health of the sector.