Priority Sector Lending Norms

Priority sector Lending targets :

TARGETS/SUB-TARGETS

The scheduled commercial banks are expected to enlarge credit to the priority sector and ensure that priority sector advances constitute 40 percent of the net bank credit and that a substantial portion is directed to the weaker sections. The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are as below:

Domestic commercial banks / Foreign banks with 20 & above branchesForeign Banks with less than 20 branches

Regional Rural Banks (RRB) and Small Finance Banks (SFB)
Categories:  Total Priority Sector
40% of Adjusted Net Bank Credit or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.    


 
40% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, out of which up to 32% can be in the form of lending to Exports and not less than 8% can be to any other priority sector75% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher. However, RRBs lending to Medium Enterprises, Social Infrastructure & Renewable Energy shall be reckoned for priority sector achievement only upto 15% of ANBC.
Categories:  Agriculture  
18% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, out of which a sub-target of 10% is prescribed for Small and Marginal Farmers- SMFs.No specific target. Forms part of total priority sector target.





18% of ANBC or credit equivalent of Off-Balance Sheet Exposure, whichever is higher, out of which a sub-target of 10%  is for Small & Marginal Farmers (SMFs).


Categories:  Micro Enterprises-MSE
7.5% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure.No specific target. Forms part of total priority sector target.

 
7.5% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure.

Categories:  Advances to Weaker Sections
12% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.No specific target in the total priority sector target.


For RRBs – 15% and For SFBs – 12% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

Export Credit (not applicable to RRBs and LABs)

Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed to be classified as priority sector as detailed below:

Domestic Banks / WoS of Foreign Banks/ SFBs/ UCBsForeign banks with 20 branches and aboveForeign banks with less than 20 branches
Incremental export credit over corresponding date of the preceding year, up to 2% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, subject to a sanctioned limit of up to Rs. 40 crore per borrower.Incremental export credit over corresponding date of the preceding year, up to 2% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.Export credit up to 32% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

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