Master Circular – Priority Sector Lending
The Reserve Bank of India has issued a master circular on priority sector lending, outlining targets and classification for scheduled commercial banks.
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) for total priority sector, 18% for agriculture, 7% for MSE, 2% for export credit, and 10% for weaker sections.
Foreign banks with less than 20 branches: 30% of ANBC for total priority sector, 15% for agriculture, 5% for MSE, 1% for export credit, and 10% for weaker sections.
Description of Categories:
Agriculture: Direct agriculture includes loans to individual farmers, Self Help Groups (SHGs), and Joint Liability Groups (JLGs) directly engaged in agricultural activities.
Chat with the Master Circular:
Download: Master Circular – Priority Sector Lending-Targets and Classification