Restriction on Advances against Sensitive Commodities under Selective Credit Control (SCC)
With a view to prevent speculative holding of essential commodities with the help of bank credit and the resultant rise in their prices, in exercise of powers conferred by Section 21 & 35A of the Banking Regulation Act, 1949, the Reserve Bank of India, issues, from time to time, directives to all commercial banks, stipulating specific restrictions on bank advances against specified sensitive commodities.
Commodities presently under the Selective Credit Control include:
a) food grains i.e. cereals and pulses,
b) selected major oil seeds indigenously grown, viz. groundnut, rapeseed / mustard, cottonseed, linseed and castor seed, oils thereof, vanaspati and all imported oils and vegetable oils, c) raw cotton and kapas,
d) sugar/ gur / khandsari,
e) Cotton textiles which include cotton yarn, man-made fibres and yarn and fabrics made out of man-made fibres and partly out of cotton yarn and
partly out of man-made fibres.