Page 42 - Banking Finance August 2021

ARTICLE

X Loas not exceeding Rs. 1.00 lakh per borrower credit limit does not exceed Rs. 1.00 lakh
provided by banks directly to individuals and Y Beneficiaries under Govt. Sponsored Schemes such as
individual members of SHGs/JLGs provided the
National Rural Livelihood Mission (NRLM), National Urban
individual borrower's household income does not
Livelihood Mission (NULM) and Self Employment Scheme
exceed Rs. 1.00 lakh in rural area and Rs. 1.60 lakh
for Rehabilitation of Manual Scavengers (SRMS)
in non-rural areas.
Y Schedule Caste and Schedule Tribe
X Loans not exceeding Rs. 2.00 lakh per borrower
provided by banks directly to individuals and Y Beneficiaries of Differential Rate of Interest (DRI) scheme
individual members of SHGs/JLGs for activities other Y Self Help Groups (SHGs)
than Agriculture and MSME like for meeting social
Y Distress farmers indebted to non-institutional lenders
needs, construction or repair of house, construction
of toilets or any viable common activity started by Y Distress person other than farmer, with loan amount not
exceeding Rs. 1.00 lakh per borrower to prepay their
SHGs.
debt to non-institutional lenders
X Loans up to Rs. 1.00 lakh per borrower to distressed
persons (other than agriculture farmer) to prepay Y Individual women beneficiaries up to Rs. 1.00 lakh per
their debt to non-institutional lenders. borrower
X Loans sanctioned to State Sponsored Organization Y Persons with disabilities
for Schedule Caste / Schedule Tribes for the specific Y Minority communities
purpose of beneficiaries of these organizations.
Y Overdraft availed by PMJDY account holders
X Loans up to Rs. 50.00 lakh to Start-ups that are
engaged in activities other than agriculture and Inter Bank Participation Certificates bought by banks (except
MSME. UCBs), on risk sharing basis and the outstanding Priority Sector
Lending Certificates (PSLCs) bought by banks are eligible for
The Revised Master Direction issued by RBI on Priority Sector classification of respective categories priority sector provided
clearly elaborates the definition and categories of weaker the underlying assets are eligible to be categorized under
section. The loans sanctioned to the following borrowers are respective categories of PSL.
considered as lending under weaker section category
Y Small and Marginal Farmers The outstanding Priority Sector Lending Certificates (PSLCs)
Y Artisans, village and cottage industries where individual bought by banks will also be eligible for classification.

The targets and sub targets for priority sector as per revised guideline of RBI are as follows:

Categories Domestic Commercial Foreign banks with less Regional Rural Small Finance
Banks (excluding RRBs & than 20 branches Banks Banks
SFBs) and Foreign banks
with 20 branches and above

Total Priority 40 % of ANBC or CEOBE 40 % of ANBC or CEOBE 75% of ANBC or 75% of ANBC or
Sector whichever is higher whichever is higher CEOBE whichever CEOBE whichever
(out of which up to 32% is higher is higher
can be in the form of
lending to Export and
not less than 8 % in
other priority sector)

42 | 2021 | AUGUST | BANKING FINANCE