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RBI increases collateral free loan limit for farmers from ₹1.6 lakh to ₹2 lakh

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The Reserve Bank of India (RBI) has increased the limit for collateral-free loans for agricultural farmers from ₹1.66 lakh to ₹2 lakh per borrower. This move is expected to provide relief to small and marginal farmers. The collateral-free loans do not require farmers to pledge assets as security. The RBI last revised the limit for these loans in 2019, raising it from ₹1 lakh to ₹1.6 lakh. The Kisan Credit Card (KCC) Scheme, which offers easy credit access for farmers, will also be enhanced through this update.