Page 41 - Banking Finance August 2021

ARTICLE

like Artisan Credit Card, Laghu Udhami Card, Swarojgar Credit Card, Weaver's Credit Card, overdraft in PMJDY account
are qualified for PSL classification.

3. Export Credit- Export credit includes pre-shipment and post-shipment credit (excluding Off Balance Sheet Items). All export
credit extended to Agriculture sector and MSME sector are classified under Priority Sector in their respective categories.
Other than Agriculture and MSME sector the export credit are classified under priority as per the following table:

Domestic banks / WoS of Foreign Foreign banks with 20 branches Foreign banks with less than
banks/ SFBs/ UCBs and above 20 branches
Incremental export credit over corresponding Incremental export credit over Export credit up to 32 per cent
date of the preceding year, up to 2 per cent of corresponding date of the of ANBC or CEOBE whichever is
Adjusted Net Bank Credit (ANBC) or Credit preceding year, up to 2 percent higher
Equivalent to Off Balance Sheet Exposure of ANBC or CEOBE whichever
(CEOBE) whichever is higher, subject to a is higher.
sanctioned limit of up to Rs. 40 crore
per borrower.

4. Education - Loans extended to individuals for educational infrastructure sector such as setting up schools, drinking
purposes including vocational courses up to Rs. 20.00 lakh water facilities and sanitation facilities including
are classified under Priority Sector Lending. construction/refurbishment of household toilets and
water improvements at household level etc subject to
5. Housing - Loans sanctioned to individuals up to Rs. 35.00 maximum Rs. 5.00 crore per borrower are to be classified
lakh in metropolitan and up to Rs. 25.00 lakh in other under PSL. For building health care facilities including
centres for purchase / construction of dwelling unit per under 'Ayushman Bharat' in Tier II to Tier VI centres with
family provided overall cost of the dwelling unit and a maximum of Rs. 10.00 crore per borrower are also
should not exceed Rs. 45 lakh in the metropolitan centre classified under Priority Sector Lending. Moreover, Bank
and Rs. 30.00 lakh in other centre by banks are eligible loan (other than RRBs, UCBs and SFBs) to MFIs for on-
under Priority sector lending classification. Moreover, lending to individuals as well as to members of SHGs/JLGs
loans extended up to Rs. 10.00 lakh in metropolitan and for water and sanitation facilities are also qualified for
up to Rs. 6.00 lakh in other centres for repairing of PSL classification subject to criteria mentioned in Master
dwelling units are also eligible for priority sector lending Direction in this regard by RBI.
classification. However, housing loan given to bank's own
employee are not to classified under PSL. Apart this, 7. Renewable Energy - Loans up to Rs. 30.00 crore
Banks loan sanctioned to Housing Finance Companies sanctioned for the purposes like solar based power
(HFCs) who are approved by National Housing Board generators, biomass based power generator, wind mills,
(NHB) for on-lending with a cap of maximum Rs. 20.00 micro-hydel plants and non-conventional energy based
lakh for individual borrowers, bank loans to any public utilities like street lighting system, remote village
governmental agency for construction of dwelling units electrification are to be classified under Priority Sector
or for slum clearance and rehabilitation of slum dwellers Lending. Whereas for individual households loans
and loan sanctioned for affordable housing project subject maximum up to Rs. 10.00 lakh per borrower are qualified
to dwelling units with carpet area not more than 60 for PSL classification.
square meter are classified under Priority Sector
Advances. 8. Other loans as per the prescribed limit are also eligible
for Priority Sector Classification. This includes the
6. Social Infrastructure - Loans extended to social following

BANKING FINANCE | AUGUST | 2021 | 41