Priority Sector Lending Norms
RBI, in June 2024, revised PSL guidelines to enhance credit flow to economically disadvantaged districts.
Key Changes in PSL Framework (Effective FY25)
- Incentive-Based Weightage System
- Districts with low credit availability (below Rs. 9,000 per person) – 125% weight for fresh PSL loans.
- Districts with high credit availability (above Rs. 42,000 per person) – 90% weight for fresh PSL loans.
- Other districts – Continue to have 100% weight to ensure balanced credit distribution.
- All MSME loans will continue to qualify under PSL norms.
Understanding Priority Sector Lending (PSL)
- PSL refers to sectors identified by the Government and RBI as crucial for economic development.
- Objective: Direct credit ....
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