Priority Sector Lending Targets and Classification
The Reserve Bank of India has outlined the categories, targets, and classification for priority sector lending.
Categories under Priority Sector:
Agriculture, Micro & Small Enterprises (MSE), Export Credit, and Advances to Weaker Sections.
Targets/Sub-targets:
Domestic commercial banks and foreign banks with 20 and above branches: 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher.
Foreign banks with less than 20 branches: 32% of ANBC or CEOBE, whichever is higher.
Computation of Adjusted Net Bank Credit:
ANBC = Total Credit Outstanding + Credit Equivalent Amount of Off-Balance Sheet Exposure – Total Deposits.
Description of Categories:
Agriculture: Direct Agriculture, including loans to individual farmers, corporates, and farmers’ producer organizations, engaged in agriculture and allied activities.
Micro & Small Enterprises (MSE): Loans to MSEs, including service sector, for financing their investment and working capital requirements.
Export Credit: Loans to exporters, including advances against exports, pre-shipment credit, and packing credit.
Advances to Weaker Sections: Loans to weaker sections, including Scheduled Castes, Scheduled Tribes, and other backward classes.
Chat with the Master Circular:
Download: Master Circular – Priority Sector Lending-Targets and Classification