KARACHI: The State Bank of Pakistan (SBP) has made amendments to Prudential Regulations (PRs) for Agriculture Financing for enhancement in unsecured and clean financing limit and exposure limit.
According to a circular issued on Monday, the SBP decided amendments to Prudential Regulations for Agriculture Financing to enable banks and DFIs to enhance flow of credit to farm and non-farm sectors.
As per amendment, the maximum limit of unsecured or clean financing for agriculture as defined in R-4 has been enhanced by Rs 4 million from Rs 1.0 million to Rs 5.0 million.
The exposure limit for the requirement of financial statements duly audited by a practicing-chartered accountant as defined under R-20 has also been enhanced from Rs 10 million to Rs 15 million, up by Rs 5 million.
The SBP has advised banks and DFIs to ensure dissemination of these regulations among their branches/field offices.
Copyright Business Recorder, 2022