RBI Revises Guidelines for Priority Sector Lending: Start-Up Loans Get PSL Tag

RBI Revises Guidelines for Priority Sector Lending: Start-Up Loans Get PSL Tag

The Reserve Bank of India has revised priority sector lending guidelines on Friday. Priority Sector Loans (PSLs) are the loans that mandatory to be lent by the banks to economically weaker sections.

The apex bank has assigned higher weightage for incremental priority sector credit to certain ‘districts’ as per existing lending flow for these areas.

Addressing regional disparities, these areas are selected considering comparatively low flow of credit. New categories have been added to promote easy financing under priority sector lending.

These are:

  • Loan for start-up to Rs 50 crore
  • Loans to farmers: for installation of solar power plants or solarisation of grid connected agriculture pumps
  • Loans for setting up Compressed Bio Gas plants
  • New limits have been set for Farmers Producers Organisations (FPOs)/ Farmers Producers Companies (FPCs) dedicated to farm & market produce at a predetermined price.
  • Likewise limit for credit for producing renewable energy is enhanced.
  • Credit limit for health infrastructure has been doubled up. This also includes Ayushman Bharat Scheme.

The RBI said that these revisions in PSL guidelines have been made after considering emerging national priorities and to bring out more focused approach for inclusive development in the country.

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