RBI issued revised guidelines for priority sectors lending

RBI issued revised guidelines for priority sectors lending

RBI has revised the Priority Sector Lending Guidelines in order to resolve regional variations in the flow of priority sector credit and aligning them with emerging national priorities to focus on inclusive development.


The Reserve Bank of India (RBI) issued revised guidelines for priority sector lending. The steps have been taken to make better credit penetration in credit-deficient areas so as to increase lending opportunities to small and marginal farmers apart from weaker sections. The initiative will also boost credits to renewable energy and health infrastructure.

The RBI stated that fresh categories under priority sector financing will include bank finance to start-ups up to INR 50 crore; loans to farmers for setting up solar power plants for solarisation of grid-connected agricultural pumps; and loans for setting up compressed bio-gas (CBG).

In addition, the targets set for small and marginal farmers and weaker sections are being increased in a phased manner. While, higher loan limits have been specified for farmer’s producer’s organizations and companies undertaking farming with assured marketing of their produce at pre-determined prices.

The credit limit for renewable energy has been doubled. To improve health infrastructure, the credit limit for health infrastructure including Ayushman Bharat has been doubled.

The central bank said that, after extensive discussions with all stakeholders, it has comprehensively reviewed the PSL Guidelines in order to align them with emerging national priorities to focus on inclusive development.

In order to resolve regional variations in the flow of priority sector credit, higher priority sector credit was allocated in specified districts, where the priority sector credit flow is relatively limited.

Follow and connect with us on  FacebookLinkedInTwitter