RPCD.PLNSFS.No. 29/06.14.01/2002-2003 October 29, 2002 The Chairman/Managing Director
All Scheduled Commercial Banks
(Including RRBs and Local Area Banks) Dear Sir, Priority Sector Advances - Small Business Please refer to para 1 (item ii) of our circular RPCD.No.PL.BC.111/04.09.01/93-94 dated March 3, 1994 regarding raising the ceiling of bank advances under priority sector to Small Business from Rs.5 lakh to Rs.10 lakh, and RPCD.No.RRB. BC.112/03.05.33/96-97 dated March 22, 1997 regarding extension of Priority Sector obligations to RRBs on the lines of Scheduled Commercial Banks. 2. In this connection, a reference is invited to paragraph No.108 of Governor's Statement on "Mid-term Review of the Monetary and Credit Policy for the year 2002-2003" forwarded with circular No.MPD.BC.222/07.01.279/ 2002-03 dated October 29, 2002. As mentioned therein, it has been decided to enhance the limit to be reckoned under Small Business for priority sector lending from the existing Rs.10 lakh to Rs.20 lakh for the original cost price of equipment without any ceiling for working capital. Banks are free to fix individual limit for working capital depending upon the requirement of different activities. 3. Please acknowledge receipt. Yours faithfully, Sd/- ( R. Sahadeva )
General Manager |