RBI revises priority sector lending norms

RBI revises priority sector lending norms


RBI revises priority sector lending norms

Mumbai: reserve Bank of India has revised its priority sector guidelines to encourage banks Small Loans Less in economically disadvantaged districts Average loan sizeThe new norms discourage lending in districts with high average loan size.
From FY 2025, higher weightage (125%) will be given New Priority Sector Lending In districts where credit availability is low (less than Rs 9,000 per capita).In districts where credit availability is high (more than Rs 42,000 per capita), loans will be weighted 90%. Except for districts with low credit availability and high loan size, all other districts will continue to have the current weightage level of 100%.
“RBI has decided to rank districts based on their productivity.” Credit flow per capita setting up priority sector, and Incentive Framework For districts with less Credit Flow And a disincentive framework “The scheme is applicable for districts with high priority sector credit flow,” RBI said.




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