Priority Sector Lending Guidelines
						
						
							
								
									
										-  Posted By 
											 10Pointer 
										 
										-  Categories 
											 Economy 
										 
										-  Published 
											 8th Aug, 2020 
										 
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- Under Priority Sector Lending (PSL) guidelines, banks have to set aside a specific portion of bank lending to sectors deemed important by the central bank.
 
- The following are the categories listed by RBI under PSL
- Agriculture
 
- Micro, Small and Medium Enterprises
 
- Export Credit
 
- Education
 
- Housing
 
- Social Infrastructure
 
- Renewable Energy
 
 
- All scheduled commercial banks and foreign banks with a sizeable presence in India are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors.
 
- RBI has recently assigned PSL status to India’s start-up sector.
 
- Start-ups were considered under the MSME category and were required to show three years of profitability
 
- RBI also recently increased the limits for renewable energy, including solar power and compressed bio-gas plants.
 
- Higher weighting will be assigned to incremental priority sector credit in identified districts where credit flow is comparatively lower.
 
- Whereas a lower weighting will be assigned in case of a comparatively higher credit flow.
.PNG)