Priority Sector Lending Guidelines for Regional Rural Banks
The Reserve Bank of India has issued guidelines for lending to the priority sector by Regional Rural Banks (RRBs).
Categories of Priority Sector:
The priority sector includes:
- Agriculture (direct and indirect finance)
- Micro and Small Enterprises (direct and indirect finance)
- Micro Credit
- Education loans
- Housing loans
Other Important Features of the Guidelines:
The guidelines outline various features, including:
- Targets and sub-targets for lending
- Direct and indirect finance for agriculture and allied activities
- Finance for individual farmers and others (corporates, partnership firms, and institutions)
Targets/Sub-Targets:
The guidelines set targets and sub-targets for lending to the priority sector, including:
- Agriculture: 18% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher
- Micro and Small Enterprises: 7.5% of ANBC or CEOBE, whichever is higher
The guidelines aim to ensure that RRBs lend a significant portion of their credit to the priority sector, promoting economic growth and development.
Chat with the Master Circular: