Question
What percentage of their total outstanding advances, are
RRBs to lend to the sectors eligible for classification as priority sector lending and sub sector targets?Solution
RRB’s Priority Sector Lending Targets as per RBI Ø As directed by RBI all RRB’s has to lend 75 % of total outstanding advances to the sectors eligible for classification as priority sector lending and sub sector targets. Ø The categories under priority sector are as follows: I. Agriculture II. Micro, Small and Medium Enterprises III. Export Credit IV. Education V. Housing VI. Social Infrastructure VII. Renewable Energy VIII. Others Domestic scheduled commercial banks ( excluding Regional Rural Banks and Small Finance Banks ) and foreign banks with 20 branches and above has to lend 40% of Adjusted Net Bank Credit [ANBC] towards PSLs.
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