Priority Sector Lending Targets and Classification
The Reserve Bank of India has set targets and classification for priority sector lending for scheduled commercial banks and foreign banks.
Categories under Priority Sector:
Agriculture, Micro Enterprises, and Advances to Weaker Sections.
Targets/Sub-targets for Priority Sector:
Domestic scheduled commercial banks and foreign banks with 20 branches and above:
- Total Priority Sector: 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
- Agriculture: 7% by March 2016 and 8% by March 2017.
- Micro Enterprises: 7% by March 2016 and 7.5% by March 2017.
Foreign banks with less than 20 branches:
- Total Priority Sector: 30% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
Computation of Adjusted Net Bank Credit (ANBC):
ANBC is the total credit available with the bank, minus a few specified deductions.
Description of Eligible Categories:
The circular provides detailed descriptions of the eligible categories under priority sector lending.
Chat with the Master Circular:
Download: Master Circular – Priority Sector Lending- Targets and Classification