Question
What is the sub-target for lending to Small and Marginal
Farmers (SMFs) under priority sector lending (PSL) norms as revised in March 2025 ?Solution
In March 2025, RBI issued the Priority Sector Lending (PSL) guidelines that states that total PSL target for domestic banks is 40% of ANBC or CEOBSE, whichever is higher. Of this, the sub-target for agriculture is 18 % of ANBC or CEOBSE, whichever is higher. Within this target, 14% is prescribed for Non-Corporate Farmers (NCFs), out of which a target of 10% is prescribed for small and marginal farmers ( SMFs ) .
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