RBI REVISED PRIORITY SECTOR LENDING (PSL) NORMS
- RBI removed the distinction between direct and indirect agriculture. It also added medium enterprises, renewable energy and social infrastructure to the priority sector.
- Also farm credit (both short term and long term credit), agriculture infrastructure and ancillary activities are included in agriculture sector for PSL.
- Loans given to food and agro processing units will form part of Agriculture sector
- The total PSL target kept unchanged at 40 % of the total bank credit.
PSL for agriculture is kept at 18%. Within this 18%, 8% lending target is kept for small and marginal farmers. The category of small and marginal farmers will include: marginal farmers (landholding of up to 1 hectare), small farmers (landholding of up to 1 hectare), landless agricultural laborers, tenant farmers, oral lessees and share-croppers.
Total categories under priority sector:
- Agriculture
- Micro, Small and Medium Enterprises
- Export Credit
- Housing
- Education
- Renewable Energy
- Social Infrastructure
- Others
- Loans to individuals for educational purpose, including vocational courses upto 10 lakh rupees will be eligible for priority sector lending.
- Housing loans upto 28 lakh rupees in metro cities and 20 lakh rupees in non- metros will be considered as priority sector lending.
- For economically weaker sections, housing loans upto 20 lakh rupees per dwelling unit will be considered as priority sector lending.
- Foreign banks with 20 branches and above will have priority sector targets for agriculture and weaker sections- to be achieved by 31 March 2018.
