November 27, 2013 9:08 AM

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Banks to treat MME loans as priority sector advance: RBI

The Reserve Bank of India, RBI on Tuesday allowed banks to treat loans given to medium manufacturing enterprises after November 13 as priority sector advance. RBI said that the step has been taken to provide enhanced liquidity support to the medium and small enterprises.The RBI also allowed incremental bank loans to medium services enterprises extended after November 13 to up to 100 million rupees and raised the loan limit given to micro and small service enterprises to 100 million rupees from 50 million rupees that will be treated as priority sector advance. This facility will remain open till March 31, 2014.Under priority sector advance, most banks have to lend 40 percent of their loans to agriculture, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sectors.

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