Priority Sector Lending Norms For Banks Under Review, Says RBI Chief

Higher share of retail prices for farmers will help sustain demand: Shaktikanta Das

The Reserve Bank of India (RBI) is reviewing the priority sector lending (PSL) norms for banks, keeping in view the changing needs of the economy and to make them more inclusive, according to Governor Shaktikanta Das.

PSL includes loans given by banks to sectors such as agriculture, micro, small and medium enterprises (MSMEs), export credit, education, housing, social infrastructure and renewable energy.

“Through priority sector lending norms for commercial banks, we aim to support farm and nonfarm sector activities that are sources of livelihood for a large cross-section of population,” the Governor said in his opening remarks at the third Suresh Tendulkar Memorial Lecture by Tharman Shanmugaratnam, Senior Minister, Republic of Singapore.

Agri reforms