RBI Issues Revised Priority Sector Lending Guidelines

The Reserve Bank of India (RBI) on Friday issued revised guidelines to enable better credit penetration to credit deficient areas and increase lending to small and marginal farmers besides weaker sections for priority sector lending. 

This step is expected to increase credit to renewable energy and health infrastructure. 

According to the revised guidelines, the higher weightage has been assigned to incremental priority sector credit it identified districts to address regional disparities in the flow of priority sector credit where priority sector credit flow is comparatively low.

The banking sector is increasing credit limits for small and marginal farmers and weaker sections gradually. Farmers' producer organisations and companies engaged in farming with guaranteed marketing of their produce at set prices will also see higher credit limits. 

Notably, loan limits for renewable energy projects have been doubled. Additionally, credit limits for health infrastructure, including those under Ayushman Bharat have also been doubled. 

This move follows a comprehensive review of Priority Sector Lending (PSL) guidelines by the central bank. The goal is to align these guidelines with national priorities and emphasise inclusive development after extensive discussions with stakeholders.