On September 13, 2019, The RBI (Reserve Bank of India) panel has suggested creating an institution like the GST (Goods and Services Tax ) Council to implement reforms in the agricultural sector. It was also recommended to transfer subsidy directly to the account and avoid debt waiver. RBIKey recommendations:
i. Banks are required to develop a management information system (MIS) to sanction loans against gold as collateral in core banking solution (CBS) platform for better monitoring of end-use of funds.
ii. The panel stated that subsidy on interest subvention or agricultural credit should be converted into direct benefit transfer (DBT) like LPG (Liquefied petroleum gas) and fertilizer with an overall limit of Rs 3 lakh per individual farmer through Kisan Credit Card (KCC) mode.
iii. Banks should increase credit supply for agricultural activities and give consumption loans to farmers up to Rs 1 lakh.
iv. The panel has also stated that the central government should insist on states to update the process of digitization and land records in due time. State governments should give banks access to digitized land records. After this, banks should not insist on submitting documents of land from those taking agricultural loans.
v. As per the Model Land Leasing Act proposed by NITI Aayog(National Institute for Transforming India)/ Land Licensed Cultivators’ Act, 2011 of Andhra Pradesh, the state governments having a highly restrictive legal framework should be encouraged to reform their legal framework.
vi. The panel stressed to revise priority sector lending (PSL) norms and the National Bank for Agriculture and Rural Development (NABARD) should increase the corpus of Rural Infrastructure Development Fund (RIDF) in central, eastern & northeastern states over a period of time.
vii. In a bid to increase credit supply to agriculture activities, the panel suggested that the government to set a target for working capital and term loan towards allied activities under ground-level credit flow (GLC).
viii. It also suggested easing the guidelines for making easy available credit for allied activities of up to Rs 2 lakh.
ix. Central Government works together with state governments to set up a credit guarantee fund for the agriculture sector on the lines of credit guarantee schemes implemented in the MSME sector(Micro, Small and Medium Enterprises).
x. It stressed to create a centralised database of the Indian agriculture sector which will help in planning policy formulation.
xi. without any intermediaries,  the limit of Rs 3 lakh for waiving collateral security by the banks in case of tie-up arrangements should be revisited to Rs 5 lakh under the existing KCC (Kisan Credit Card ) norms subject to the condition that the tie-up arrangements are between the producers and processing units.
xii. The Reserve Bank of India has created the Internal Working Group (IWG) to Review Agricultural Credit chaired by Mahesh kumar Jain on February 13, 2019.
other member of the panel include , Ashok gulati, surekha marandi, Amalorpavanathan, Rajiv ranjan, J.P.Sharma, Sonalai sen Gupta.

About RBI:
♦ Governor
: Shaktikanta Das
♦ Headquarters: Mumbai
♦ Founded: 1 April 1935