Question
What is the revised Priority Sector Lending (PSL) target
for Urban Cooperative Banks (UCBs) as per 2025 guidelines? ÂSolution
Explanation: Â
Urban Cooperative Banks previously had to meet a 75% PSL target . In the 2025 revision, the RBI reduced this to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher . This change recognizes UCBs’ capacity constraints while still mandating significant credit flow to priority sectors.  Â
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