Page 39 - Banking Finance August 2021
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ARTICLE








         PRIORITY SECTOR




         LENDING - REVAMPED



         GUIDELINE





         To minimize regional disparity in Priority sector
         credit flow and boost economy to achieve

         sustainable development goals







         T         he Reserve Bank of India has come up with revised  with credit flow to some specific sectors like clean energy,


                                                              Health Infrastructure and weaker sections. Accordingly, from
                   guideline of priority sector lending to align with
                                                              the Financial Year 2022 onwards, a higher weightage (125%)
                   emerging national priorities for better credit
                   penetration to credit deficit areas by increased
                                                              sector in the identified districts where per capita PSL is less
         lending to weaker sections including small and marginal  has been prescribed to the incremental credit to priority
         farmers, renewal energy and health infrastructure with a  than Rs. 6000/- and a lower weightage (90%) would be
         sharper focus on inclusive development.              assigned for the incremental priority sector credit in the
                                                              identified districts having per capita PSL greater than Rs.
         To address regional disparities in the flow of priority sector  25000/- where the credit flow is comparatively higher.
         credit, higher weightage has been assigned to incremental
         priority sector credit in identified districts where priority  The RBI has identified 184 districts with low PSL credit flow.
         sector credit flow is comparatively low. It has been decided  In the revised PSL guideline, the targets for 'Small and
         to rank districts on the basis of per capita credit flow to priority  Marginal Farmers' and 'Weaker Sections' are to be increased
         sector and incentivise the credit flow to the districts with  in a phased manner. Also higher credit limit has been given
         comparatively having lower flow of priority sector credit along  for Farmer Producers Organizations (FPOs)/ Farmer Producers
                                                              Companies (FPCs) that undertaking farming with assured
                              About the author                marketing of their produce at a pre determined price.

                         Navneet Prakash Sinha                Lending to Renewal energy has also been doubled. Now new
                         Manager (Faculty)                    loans up to Rs. 30 crore to borrowers for the purposes like
                         Union Bank of India                  Solar based power generator, Biomass based power
                         Staff training centre, Bhopal
                                                              generators, wind mills, micro-hydel plants and for non

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