Home India Reserve Bank of India Master Directions – Priority Sector Lending (PSL) – Targets ...
Date: 2020-09-04 Category: Not Applicable State: Union Government Country: India

Master Directions – Priority Sector Lending (PSL) – Targets and Classification dated September 04, 2020 [superseded by Master Directions - Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025]

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: These Master Directions, issued by the Reserve Bank of India, outline the rules and guidelines for Priority Sector Lending (PSL) targets and classification for various banks. The directions consolidate and update previous instructions on the subject. The directions came into effect when placed on the RBI official website on September 4, 2020, and have been updated periodically since. Key Points / Main Content: * **Preliminary Information** * These directions are called the Reserve Bank of India (RBI) Priority Sector Lending - Targets and Classification Directions, 2020. * These directions apply to all Commercial Banks, including Regional Rural Banks (RRB), Small Finance Banks (SFB), Local Area Banks (LAB), and Primary Urban Cooperative Banks (UCB) other than Salary Earners' Banks. * **Categories and Targets Under Priority Sector** * The categories under priority sector are Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others. * Targets and sub-targets are set for priority sector lending based on Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher. * **Adjusted Net Bank Credit (ANBC) Computation** * ANBC is defined as outstanding Bank Credit in India, computed as per a specified formula. * **Adjustments for weights in PSL Achievement** * Higher weight (125) assigned to incremental priority sector credit in districts with comparatively lower per capita PSL (less than ₹9,000). * Lower weight (90) assigned to incremental priority sector credit in districts with comparatively higher per capita PSL (greater than ₹42,000). * RRBs, UCBs, LABs, and foreign banks including WoS are exempted from adjustments of weights in PSL achievement. * **Eligible Categories Under Priority Sector** * **Agriculture:** Includes farm credit, agriculture infrastructure, and ancillary activities. * Farm Credit to Individual farmers, Proprietorship firms of farmers, Loans to distressed farmers, loans under Kisan Credit Card Scheme, loans to small and marginal farmers for purchase of land for agricultural purposes, loans against pledge/hypothecation of agricultural produce including warehouse receipts, loans to farmers for installation of standalone Solar Agriculture Pumps and for solarisation of grid connected Agriculture Pumps, Loans to farmers for installation of solar power plants on barren/fallow land or in stilt fashion on agriculture land owned by farmer. * Farm Credit to Corporate farmers, Farmer Producer Organisations, Companies of Individual Farmers, Partnership firms and Cooperatives of farmers engaged in Agriculture and Allied Activities. * Agriculture Infrastructure loans have an aggregate sanctioned limit of ₹100 crore per borrower from the banking system. * Ancillary Services include loans to cooperative societies of farmers (up to ₹5 crore), loans to Startups engaged in agriculture and allied services (up to ₹50 crore), and loans for Food and Agro-processing (up to ₹100 crore). * **MSMEs:** All bank loans to MSMEs qualify for classification under priority sector lending. * **Export Credit:** Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective categories. * Export Credit other than in agriculture and MSME will be allowed to be classified as priority sector as per the specific table. * Export credit includes preshipment and postshipment export credit excluding off-balance sheet items. * **Education:** Loans to individuals for educational purposes, including vocational courses, not exceeding ₹20 lakh are eligible. * **Housing:** Bank loans to the housing sector as per limits prescribed below are eligible for priority sector classification. * Loans to individuals up to ₹35 lakh in metropolitan centers and up to ₹25 lakh in other centers for purchase/construction of a dwelling unit per family. * Loans up to ₹10 lakh in metropolitan centers and up to ₹6 lakh in other centers for repairs to damaged dwelling units. * Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to dwelling units with carpet area of not more than 60 sq.m. * Bank loans for affordable housing projects using at least 50% of FAR/FSI for dwelling units with carpet area of not more than 60 sq.m. * **Social Infrastructure:** Bank loans to social infrastructure sector as per limits prescribed below are eligible for priority sector classification. * Bank loans up to a limit of ₹5 crore per borrower for setting up schools, drinking water facilities, and sanitation facilities, and loans up to a limit of ₹10 crore per borrower for building health care facilities in Tier II to Tier VI centers. * **Renewable Energy:** Bank loans up to ₹30 crore for purposes like solar/biomass-based power generators, wind mills, etc. are eligible. The loan limit for individual households will be ₹10 lakh. * **Others:** Include loans to individuals and SHGs/JLGs satisfying the criteria as prescribed in Master Direction on Regulatory Framework for Microfinance Loans Directions, loans to distressed persons, and loans to State Sponsored Organisations for Scheduled Castes/Tribes. * **Weaker Sections:** Priority sector loans to Small and Marginal Farmers, artisans, beneficiaries under Government Sponsored Schemes, Scheduled Castes/Tribes, Self Help Groups, distressed farmers, minority communities, etc., are considered under this category. * **Miscellaneous** * Investments by banks in securitization notes and transfer of assets through direct assignment/outright purchase are eligible under specific conditions. * Inter-Bank Participation Certificates (IBPCs) bought by banks are eligible under specific conditions. * Priority Sector Lending Certificates (PSLCs) are eligible under specific conditions. * Bank loans to MFIs/NBFCMFIs and NBFCs for on-lending are eligible under specific conditions and limits. * Co-lending by Banks and NBFCs to the priority sector is permitted for Scheduled Commercial Banks excluding SFBs, RRBs, UCBs and LABs. * COVID-19 measures for PSL include specific exemptions and classifications for loans related to COVID-19 healthcare and affected sectors. * Monitoring of priority sector lending targets is done quarterly. * Non-achievement of priority sector targets leads to contributions to the Rural Infrastructure Development Fund (RIDF) and other funds. * Common guidelines for priority sector loans include directives on interest rates, service charges, and maintenance of a register for loan applications. Impact Analysis: * **Commercial Banks (including RRBs, SFBs, LABs, and UCBs):** * Impact: Must adhere to the updated PSL targets and classifications, adjust lending strategies based on district-level incentives/disincentives, and comply with reporting requirements. * Action Required: Review current lending portfolios, update internal policies and systems, train staff on new guidelines, and ensure timely and accurate reporting to RBI/NABARD. * **Borrowers (Farmers, MSMEs, Individuals seeking education/housing loans):** * Impact: May benefit from increased access to credit under the PSL scheme, particularly in districts with lower per capita PSL. * Action Required: Understand the eligibility criteria and apply for loans under the relevant priority sector categories. * **NBFCs/MFIs:** * Impact: Can receive bank loans for on-lending to priority sector borrowers under specific conditions and limits, contributing to PSL achievement for banks. * Action Required: Comply with RBI guidelines on on-lending, maintain necessary borrower-wise details, and ensure adherence to interest rate caps. * **RBI:** * Impact: Responsible for monitoring compliance with PSL targets, allocating funds to RIDF in case of shortfalls, and providing regulatory clearances/approvals. * Action Required: Oversee the implementation of the updated guidelines, track PSL performance across different banks and regions, and take corrective actions as necessary. * **NABARD/NHB/SIDBI/MUDRA Ltd.:** * Impact: Serve as recipients of funds from banks in case of PSL shortfalls, supporting rural infrastructure development and MSME financing. * Action Required: Manage funds received from banks effectively and allocate them to priority sector projects as per RBI guidelines.

Key Entities Referenced

Reserve Bank of India: The central bank of India, responsible for issuing instructions and guidelines to banks regarding priority sector lending. Priority Sector Lending: A scheme by Reserve Bank of India. Lending to sectors of the economy that the government considers important. The document provides updated instructions and guidelines on this subject. Banking Regulation Act, 1949: An act of parliament in India that empowers the Reserve Bank of India to regulate, control and supervise the banking firms in India. Regional Rural Banks: Commercial banks including Regional Rural Banks that are subject to the provisions outlined in the document. Small Finance Banks: Small Finance Banks that are subject to the provisions outlined in the document. Local Area Banks: Local Area Banks that are subject to the provisions outlined in the document. Primary Urban Cooperative Banks: Primary Urban Cooperative Banks that are subject to the provisions outlined in the document. Mumbai, Maharashtra: Location of the Financial Inclusion Development Department, Central Office of the Reserve Bank of India.
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भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/FIDD/2020-21/72 Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21 September 04, 2020 (Updated as on March 25, 2025) (Updated as on June 21, 2024) (Updated as on July 27, 2023) (Updated as on October 20, 2022) (Updated as on August 02, 2022) (Updated as on October 26, 2021) (Updated as on June 11, 2021) (Updated as on May 31, 2021) (Updated as on April 29, 2021) The Chairman / Managing Director/ Chief Executive Officer [All Commercial Banks including Regional Rural Banks, Small Finance Banks, Local Area Banks and Primary (Urban) Co-operative Banks other than Salary Earners’ Banks] Madam/Dear Sir, 5 Master Directions – Priority Sector Lending (PSL) – Ta2rgets and Classification. 0 2 , The Reserve Bank of India has, from time to time1, issued a number of instructions / 0 guidelines to banks relating to Priority Sector Le riln ding. The Master Directions enclosed p incorporate the updated instructions / guidelAines on the subject. The list of circulars consolidated in this Master Direction is indicaf ted in the Appendix. . e . w n w Yours faithfully, a r d h t Wi (Nisha Nambiar) Chief General Manager-in-Charge िवत् तीय समावेशन और िवकास िवभाग,केंद्रीय कायार्लय,10वी मंिजल,केंद्रीय कायार्लय भवन, मुंबई 400 001 टेलीफोन /Tel No: 91-22-22610261 फै�/Fax No: 91-22-22621011/22610948/22610943 ई-मेल/ Email : cgmincfidd@rbi.org.in Financial Inclusion & Development Department, Central Office, 10th Floor, C.O. Building, Mumbai 400 001 िहंदी आसान है, इसका प्रयोग बढ़ाइये “चेतावनी- : �रज़वर् बैंक द्वारा मेल, डाक, एसएमएस या फोन कॉल के ज�रए िकसी की भी व् य��गत जानकारी जैसे बैंक के खाते का ब् यौरा, पासवडर् आिद नही ं मांगी जाती है। यह धन रखने या देने का प्रस् ताव भी नही ंकरता है। ऐसे प्रस्त ावों का िकसी भी तरीके से जवाब मत दीिजए।" Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.INDEX Para Particulars No. CHAPTER – I PRELIMINARY 1. Short Title and Commencement 2. Applicability 3. Definitions/ Clarifications CHAPTER – II CATEGORIES AND TARGETS UNDER PRIORITY SECTOR 4. Categories under Priority Sector 5. Targets /Sub-targets for Priority Sector 6. Computation of Adjusted Net Bank Credit (ANBC) 7. Adjustments for weights in PSL Achievement CHAPTER – III DESCRIPTION OF ELIGIBLE CATEGORIES UNDER PRIORITY SECTOR 8. Agriculture 9. Micro, Small and Medium Enterprises (MSMEs) 10. Export Credit 11. Education 5 12. Housing 2 0 13. Social Infrastructure 2 , 1 14. Renewable Energy 0 15. Others ril p 16. Weaker Sections A f CHe.APTER – IV . w MISCELLANEOUS n 17. Investments by Banks in Secuwritisation Notes a 18. Transfer of Assets through rDirect Assignment /Outright Purchase d h 19. Inter Bank Participation tCertificates (IBPCs) Wi 20. Priority Sector Lending Certificates (PSLCs) 21. Bank loans to MFIs (NBFC-MFIs, Societies, Trusts, etc.) for On-Lending 22. Bank loans to NBFCs for On-Lending 23. Bank loans to HFCs for On-Lending 24. Limits on On-Lending 25. Co-lending by Banks and NBFCs to priority sector 26. COVID19 measures for PSL 27. Monitoring of Priority Sector Lending Targets 28. Non-achievement of Priority Sector Targets 29. Common guidelines for Priority Sector Loans ANNEX – I A: List of Districts with comparatively high PSL Credit ANNEX – I B: List of Districts with comparatively low PSL Credit ANNEX – II: Indicative list of eligible activities under Agriculture Infrastructure and Ancillary activities ANNEX – III: Indicative list of Permissible Activities under Food Processing Sector as shared by MoFPI ANNEX – IV: Calculation of Priority Sector Achievement APPENDIX – List of Circulars ConsolidatedMaster Directions- Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2020 In exercise of the powers conferred by Sections 21 and 35A read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified. CHAPTER – I PRELIMINARY 1. Short Title and Commencement 1.1 These Directions shall be called the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2020. 1.2 These Directions shall come into effect on the day they are placed on the official 5 website of the Reserve Bank of India. 2 0 2 1, 0 2. Applicability ril p The provisions of these Directions shall apAply to every Commercial Bank [including f . e Regional Rural Bank (RRB), Small F.inance Bank (SFB), Local Area Bank] and w n Primary (Urban) Co-operative Banwk (UCB) other than Salary Earners’ Bank. a r d h t 3. Definitions/ ClarificationsWi 3.1 In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below: (i) ‘Urban Co-operative Bank’ or ‘UCB’ means a Primary Co-operative Bank as defined under Section 5(ccv) of the Banking Regulation Act, 1949 read with Section 56 of the Act. (ii) “On-lending” means loans sanctioned by banks to eligible intermediaries for onward lending for creation of priority sector assets. The average maturity of priority sector assets thus created by the eligible intermediaries should be co-terminus with maturity of the bank loan. (iii) Contingent liabilities/off-balance sheet items do not form part of priority sector achievement. However, foreign banks with less than 20 branches have an option to reckon the Credit Equivalent of Off-Balance SheetMaster Directions - Priority Sector Lending – Targets and Classification - 2020 Exposures (CEOBE) extended to borrowers for eligible priority sector activities for achievement of priority sector target, subject to the condition that the CEOBE (both priority sector and non-priority sector excluding interbank exposure) should be added to the Adjusted Net Bank Credit (ANBC) in the denominator for computation of PSL targets. (iv) Off-balance sheet interbank exposures are excluded for computing CEOBE for the priority sector targets. (v) The term “all-inclusive interest” includes interest (effective annual interest), processing fees and service charges. 3.2 All other expressions, unless defined herein, shall have the same meaning as has been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or any statutory modification or re-enactment thereto or as used in commercial parlance, as the5 case may be. 2 0 2 3.3 Banks must ensure that loans extended und, er priority sector are for approved 1 0 purposes and the end use is continuou rsilly monitored. The banks should put in p A place proper internal controls and s ystems in this regard. f . e w. n w aCHAPTER – II r d CATEGORIES ANDh TARGETS UNDER PRIORITY SECTOR t Wi 4. 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 The details of eligible activities under the above categories are specified in Chapter III. 2Master Directions - Priority Sector Lending – Targets and Classification - 2020 5. Targets /Sub-targets for Priority sector 5.1 The targets and sub-targets set under priority sector lending, to be computed on the basis of the ANBC/ CEOBE as applicable as on the corresponding date of the preceding year, are as under: Categories Domestic Foreign banks Regional Rural Small commercial banks with less than Banks Finance (excl. RRBs & SFBs) 20 branches Banks & foreign banks with 20 branches and above Total 40 per cent of ANBC as 40 per cent of 75 per cent of 75 per cent of Priority computed in para 6 ANBC as ANBC as ANBC as Sector below or CEOBE computed in para computed in para 6 computed in whichever is higher 6 below or below or CEOBE para 6 below CEOBE whichever is or CEOBE whichever is higher; However, whichever is higher; out of lending to Medium higher. which up to 32% Enterprises, Social 5 can be in the Infrastructure and 2 0 form of lending to Renewable Energy 2 Exports and1 ,not shall be reckoned 0 less than 8 % can for priority sector be to aprnil y other achievement only A priority sector up to 15 per cent of f e. ANBC. . w Agriculture 18 per cent of ANBC or Not applicable 18 per cent ANBC 18 per cent of n CEOBE, whichever wis or CEOBE, ANBC or a higher; out of which whichever is CEOBE, r d a target of 10 pehrcent# higher; out of whichever is t is prescribed Wfior Small which a target of higher; out of and Marginal Farmers 10 percent# is which a (SMFs) prescribed for target of 10 SMFs percent# is prescribed for SMFs Micro 7.5 per cent of ANBC Not applicable 7.5 per cent of 7.5 per cent Enterprises or CEOBE, whichever ANBC or CEOBE, of ANBC or is higher whichever is higher CEOBE, whichever is higher Advances 12 percent# of ANBC Not applicable 15 per cent of 12 percent# to Weaker or CEOBE, whichever ANBC or CEOBE, of ANBC or Sections is higher whichever is higher CEOBE, whichever is higher # Revised targets for SMFs and Weaker Section will be implemented in a phased manner as indicated in para 5.2 3Master Directions - Priority Sector Lending – Targets and Classification - 2020 5.2 The targets for lending to SMFs and for Weaker Sections shall be revised upwards from FY 2021-22 onwards as follows: Financial Year Small and Marginal Weaker Sections target ^ Farmers target * 2020-21 8% 10% 2021-22 9% 11% 2022-23 9.5% 11.5% 2023-24 10% 12% * Not applicable to UCBs ^ Weaker Sections target for RRBs will continue to be 15% of ANBC or CEOBE, whichever is higher. 5.3 UCBs shall comply with the stipulated targets as under: Categories Primary Urban Co-operative Banks Total 60 percent of ANBC or CEOBE, whichever is higher, from FY2024- Priority 25 onwards, with interim targets for the previous financial years as Sector under: 5 FY2019- FY2020- FY2021- F2Y2022- FY2023- 0 2 20 21 22 23 24 , 1 40% 45% 500% 60% 60% Micro 7.5 per cent of ANBC or CEOBEril , whichever is higher p A Enterprises f . Advances 12 per cent of ANBC or CeEOBE, whichever is higher. The revised . w to Weaker targets for weaker sect ions will be implemented in a phased manner n Sections as indicated below: w a r FY2019- FY2020d- FY2021- FY2022- FY2023- FY2024- FY2025- h 20 2 Wi1t 22 23 24 25 26 10.00% 11.00% 11.50% 11.50% 11.50% 11.75% 12.00% 5.4 All domestic banks (other than UCBs) and foreign banks with more than 20 branches are directed to ensure that the overall lending to Non-Corporate Farmers (NCFs) does not fall below the system-wide average of the last three years’ achievement which will be separately notified every year. The applicable target for lending to the non-corporate farmers for FY 2022-23 will be 13.78% of ANBC or CEOBE whichever is higher. All efforts should be made by banks to increase the Farm Credit (as per para 8.1) higher than the NCF target. 4Master Directions - Priority Sector Lending – Targets and Classification - 2020 6. Computation of Adjusted Net Bank Credit (ANBC) 6.1 For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] and computed as follows: Bank Credit in India [As prescribed in item No.VI of Form `A’ under I Section 42(2) of the RBI Act, 1934] Bills Rediscounted with RBI and other approved Financial Institutions II Net Bank Credit (NBC)* III(I-II) Outstanding Deposits under RIDF and other eligible funds with NABARD, IV NHB, SIDBI and MUDRA Ltd in lieu of non-achievement of priority sector lending targets/sub-targets + outstanding PSLCs Eligible amount for exemptions on issuance of long-term bonds for V infrastructure and affordable housing as per circular DBOD.BP.BC. No.25/08.12.014/2014-15 dated July 15, 2014 Advances extended in India against the incremental FCNR (B)/NRE VI deposits, qualifying for exemption from CRR/SLR requirements, as per the Reserve Bank’s circulars DBOD.No.Ret.BC.36/12.01.001/ 2013-14 dated August 14, 2013 read with DBOD.No.Ret.BC.93/ 12.01.001/2013- 14 dated January 31, 2014, DBOD mailbox clarification issued on February 6, 2014 and UBD.BPD.(PCB).CIR.No.55/13.01.000/2013-14 2 dated August 27, 2013 read with UBD.BPD.(PCB0). Cir.No.72/ 13.01.000/ 2 2013-14 dated June 11, 2014. , 1 Investments made by public sector banks i0n the Recapitalization Bonds VII floated by Government of India ril p A Other investments eligible to be treated as priority sector (e.g. VIII f investments in securitisation notes)e . . Face Value of securities acquirewd and kept under HTM category under IX n the TLTRO 2.0 (Press Releawse 2019-2020/2237 dated April 17, 2020 read with Q.11 of FAQ anad SLF-MF- Press Release 2019-2020/2276 r d dated April 27, 2020 andh also Extended Regulatory Benefits under SLF- t MF Scheme vide PressW iRelease 2019-2020/2294 dated April 30, 2020. Bonds/debentures in Non-SLR categories under HTM category X For UCBs: investments made after August 30, 2007 in permitted non SLR XI bonds held under ‘Held to Maturity’ (HTM) category ANBC (Other than UCBs) III + IV- (V+VI+VII) +VIII - IX + X ANBC for UCBs III + IV - VI - IX + XI * For the purpose of priority sector computation only. Banks should not deduct / net any amount like provisions, accrued interest, etc. from NBC. 6.2 For the purpose of calculation of CEOBE, banks shall be guided by the Master Circular on Exposure Norms issued by Department of Regulation, RBI vide DBR.No.Dir.BC.12/13.03.00/ 2015-16 dated July 1, 2015 and as updated from time to time. UCBs shall be guided by the relevant provisions of the Master Circular dated July 1, 2015 on ‘Prudential Norms on Capital Adequacy - UCBs’ issued by Reserve Bank of India. 6.3 SFBs shall be further guided by Para 6.5 (ii to vii) of the Operating Guidelines for Small Finance Banks issued by Department of Regulation (RBI/2016-17/81 5Master Directions - Priority Sector Lending – Targets and Classification - 2020 DBR.NBD. No.26/16.13.218/2016-17 dated October 06, 2016), pertaining to treatment of grandfathered loans, for computation of ANBC. 6.4 While calculating Net Bank Credit as above, if banks subtract prudential write off at Corporate/Head Office level, it must be ensured that the credit to priority sector and all other sub-sectors so written off should also be subtracted category wise from priority sector and sub-target achievement. Wherever, investments or any other items which are treated as eligible for classification under priority sector target/sub-target achievement, the same should also form part of Adjusted Net Bank Credit. 6.5 All the banks have to adhere to the respective licencing guidelines and operating guidelines issued by the Department of Regulation, RBI and updated from time to time 5 2 7. Adjustments for weights in PSL Achievement 0 2 To address regional disparities in the flow of prior1it,y sector credit at the district level, 0 it was decided to rank districts on the basis ofr il per capita credit flow to priority sector p A and build an incentive framework for distrfi cts with comparatively lower flow of credit . e . w and a dis-incentive framework for districts with comparatively higher flow of priority n w sector credit. With effect from FY 2a024-25, a higher weight (125%) shall be assigned r d to the incremental priority sectohr credit in the identified districts where the credit flow t Wi is comparatively lower (per capita PSL less than ₹9,000), and a lower weight (90%) will be assigned for incremental priority sector credit in the identified districts where the credit flow is comparatively higher (per capita PSL greater than ₹42,000). The list of both categories of districts is given in Annexes IA and IB and will be valid up to FY 2026-27. The districts other than those mentioned in Annexes IA and IB will continue to have existing weightage of 100%. The banks should continue to report the actual outstanding amount in QPSA returns as hitherto. Adjustments for weights to incremental PSL credit will be done by RBI, based on reporting of district wise credit flow to FIDD, CO through the ADEPT database. RRBs, UCBs, LABs and foreign banks (including WoS) would be exempted from adjustments of weights in PSL achievement due to their currently limited area of operation/catering to a niche segment. 6Master Directions - Priority Sector Lending – Targets and Classification - 2020 CHAPTER – III DESCRIPTION OF ELIGIBLE CATEGORIES UNDER PRIORITY SECTOR 8. Agriculture The lending to agriculture sector will include Farm Credit (Agriculture and Allied Activities), lending for Agriculture Infrastructure and Ancillary Activities. 8.1 Farm Credit - Individual farmers Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans] and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. This will include: i. Crop loans including loans for traditional/non-traditional plantations, horticulture and allied activities. 5 2 0 ii. Medium and long-term loans for agricu2lture and allied activities (e.g. , 1 0 purchase of agricultural implements and machinery and developmental ril p loans for allied activities). A f . e . iii. Loans for pre and post-harvewst activities viz. spraying, harvesting, grading n w and transporting of their own farm produce. a r d h iv. Loans to distresse Wdit farmers indebted to non-institutional lenders. v. Loans under the Kisan Credit Card Scheme. vi. Loans to small and marginal farmers for purchase of land for agricultural purposes. vii. Loans against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months subject to a limit up to ₹75 lakh against NWRs/eNWRs and up to ₹50 lakh against warehouse receipts other than NWRs/eNWRs. viii. Loans to farmers for installation of stand-alone Solar Agriculture Pumps and for solarisation of grid connected Agriculture Pumps. ix. Loans to farmers for installation of solar power plants on barren/fallow land or in stilt fashion on agriculture land owned by farmer. 7Master Directions - Priority Sector Lending – Targets and Classification - 2020 8.2 Farm Credit - Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities (a) Loans for the following activities will be subject to an aggregate limit of ₹2 crore per borrowing entity: (i) Crop loans to farmers which will include traditional/non-traditional plantations and horticulture and loans for allied activities. (ii) Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements and machinery and developmental loans for allied activities). (iii) Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own farm produce. (b) Loans up to ₹75 lakh against pledge/hypothecation of agricultural produce 5 2 (including warehouse receipts) for a per0iod not exceeding 12 months 2 , against NWRs/eNWRs and up to ₹501 lakh against warehouse receipts 0 other than NWRs/eNWRs. pril A .f (c) Loans up to ₹5 crore per b .oerrowing entity to FPOs/FPCs undertaking w farming with assured markneting of their produce at a pre-determined price. w a r d h (d) UCBs are not permtitted to lend to co-operatives of farmers. Wi 8.3 Agriculture Infrastructure Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system. List of activities is furnished in Annex II. 8.4 Ancillary Services 8.4.1 Following loans under ancillary services will be subject to limits prescribed as under: i. Loans up to ₹5 crore to co-operative societies of farmers for purchase of the produce of members (Not applicable to UCBs) ii. Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that are engaged in agriculture and allied services. 8Master Directions - Priority Sector Lending – Targets and Classification - 2020 iii. Loans for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system. 8.4.2 Outstanding deposits under RIDF and other eligible funds with NABARD on account of priority sector shortfall. 8.4.3 The eligible activities under ancillary services and food processing is given in Annex II and Annex III, respectively. 8.5 Small and Marginal Farmers (SMFs) For the purpose of computation of achievement of the sub-target, Small and Marginal Farmers will include the following: i. Farmers with landholding of up to 1 hectare (Marginal Farmers). 5 ii. Farmers with a landholding of more than 1 hectare and up to 2 hectares (Small 2 0 2 Farmers). , 1 0 iii. Landless agricultural labourers, tenanritl farmers, oral lessees and share- p A croppers whose share of landholdinfg is within the limits prescribed for SMFs. . e . w iv. Loans to Self Help Groups (SHn Gs) or Joint Liability Groups (JLGs), i.e. groups w a of individual SMFs directly erngaged in Agriculture and Allied Activities, provided d h t banks maintain disaggWriegated data of such loans. v. Loans up to ₹2 lakh to individuals solely engaged in Allied activities without any accompanying land holding criteria. vi. Loans to FPOs/FPC of individual farmers and co-operatives of farmers directly engaged in Agriculture and Allied Activities where the land-holding share of SMFs is not less than 75 per cent, subject to loan limits prescribed in para 8.2. UCBs are not permitted to lend to co-operatives of farmers. 8.6 Lending by banks to NBFCs and MFIs for on-lending in agriculture (i) Bank credit extended to registered NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI recognised SRO for the sector, for on-lending to individuals and also to members of SHGs / JLGs will be eligible for categorisation as priority sector advance under respective categories of agriculture subject to conditions specified in para 21 (not applicable to RRBs, UCBs, SFBs and LABs). 9Master Directions - Priority Sector Lending – Targets and Classification - 2020 (ii) Bank credit to registered NBFCs (other than MFIs) towards on-lending for ‘Term lending’ component under agriculture will be allowed up to ₹ 10 lakh per borrower subject to conditions specified in para 22 and 24 (not applicable to RRBs, UCBs, SFBs and LABs). 9. Micro, Small and Medium Enterprises (MSMEs) The definition of MSMEs shall be as given in the Master Direction – Lending to Micro, Small & Medium Enterprises (MSME) Sector FIDD.MSME & NFS.12/06.02.31/2017-18 dated July 24, 2017 as updated from time to time. All bank loans to MSMEs shall qualify for classification under priority sector lending. 9.1 Factoring Transactions (not applicable to RRBs and UCBs) (i) ‘With Recourse’ Factoring transactions by banks which carry out the 5 business of factoring departmentally wherev2er the ‘assignor’ is a Micro, 0 2 Small or Medium Enterprise would be elig,i ble for classification under MSME 1 0 category on the reporting dates. ril p A (ii) In terms of paragraph 9 of Circ.uflar DBR.No. FSD.BC.32/24.01.007/2015- e . w 16 dated July 30, 2015 on ‘Provision of Factoring Services by Banks- n w Review’, inter-alia, the aborrower’s bank shall obtain from the borrower, r d h periodical certifica Wtiets regarding factored receivables to avoid double financing/ counting. Further, the ‘factors’ must intimate the limits sanctioned to the borrower and details of debts factored to the banks concerned, taking responsibility to avoid double financing. (iii) Factoring transactions pertaining to MSMEs taking place through the Trade Receivables Discounting System (TReDS) shall also be eligible for classification under priority sector. 9.2 Khadi and Village Industries Sector (KVI) All loans to units in the KVI sector will be eligible for classification under the sub- target of 7.5 percent prescribed for Micro Enterprises under priority sector. 10Master Directions - Priority Sector Lending – Targets and Classification - 2020 9.3 Other Finance to MSMEs (i) Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that conform to the definition of MSME as per Para 9. (ii) Loans to entities involved in assisting the decentralized sector in the supply of inputs and marketing of output of artisans, village and cottage industries. In respect of UCBs, the term “entities” shall not include institutions to which UCBs are not permitted to lend under the RBI guidelines / the legal framework governing their functioning. (iii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village and cottage industries (Not applicable for UCBs). (iv) Loans sanctioned by banks to NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI recognised SRO5 for the sector for on-lending 2 0 to MSME sector as per the conditions spe2cified in paragraph 21 of these , 1 Master Directions (not applicable to RRB0s, SFBs and UCBs) ril p A (v) Loans to registered NBFCs (other than MFIs) for on-lending to Micro & Small f . e Enterprises as per conditions sw.pecified in para 22 of these Master Directions n (not applicable to RRBs, SFw Bs and UCBs) a r d h (vi) Credit outstanding utnder General Credit Cards (including Artisan Credit Wi Card, Laghu Udyami Card, Swarojgar Credit Card and Weaver’s Card etc. in existence and catering to the non-farm entrepreneurial credit needs of individuals). (vii) Overdraft to Pradhan Mantri Jan-Dhan Yojana (PMJDY) account holders as per limits and conditions prescribed by Department of Financial Services, Ministry of Finance from time to time, will qualify as achievement of the target for lending to Micro Enterprises. (viii) Outstanding deposits with SIDBI and MUDRA Ltd. on account of priority sector shortfall. 11Master Directions - Priority Sector Lending – Targets and Classification - 2020 10. Export Credit (not applicable to RRBs and LABs) Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed to be classified as priority sector as per the following table: Domestic banks / WoS of Foreign banks with 20 Foreign banks with less Foreign banks/ SFBs/ UCBs branches and above than 20 branches Incremental export credit over Incremental export credit Export credit up to 32 per corresponding date of the over corresponding date cent of ANBC or CEOBE preceding year, up to 2 per of the preceding year, up whichever is higher. cent of ANBC or CEOBE to 2 percent of ANBC or whichever is higher, subject to CEOBE whichever is a sanctioned limit of up to ₹ 40 higher. crore per borrower. 5 2 0 10.1 Export credit includes pre-shipment and post-s2hipment export credit (excluding , 1 0 off-balance sheet items) as defined in M aster Circular on Rupee / Foreign ril p Currency Export Credit and CustoAmer Service to Exporters issued by f . e Department of Regulation, RBI v.ide DBR No.DIR.BC.14/04.02.002/2015-16 w n dated July 1, 2015 and updatewd from time to time. a dr 11. Education h t Wi Loans to individuals for educational purposes, including vocational courses, not exceeding ₹ 20 lakh will be considered as eligible for priority sector classification. Loans currently classified as priority sector will continue till maturity. 12. Housing 12.1 Bank loans to Housing sector as per limits prescribed below are eligible for priority sector classification: (i) Loans to individuals up to ₹35 lakh in metropolitan centres (with population of ten lakh and above) and up to ₹25 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed ₹45 lakh and ₹30 lakh respectively. Existing individual housing loans of UCBs presently classified under PSL will continue as PSL till maturity or repayment. 12Master Directions - Priority Sector Lending – Targets and Classification - 2020 (ii) Housing loans to banks’ own employees will not be eligible for classification under the priority sector. (iii) Since Housing loans which are backed by long term bonds are exempted from ANBC, banks should not classify such loans under priority sector. Investments made by UCBs in bonds issued by NHB / HUDCO on or after April 1, 2007 shall not be eligible for classification under priority sector. 12.2 Loans up to ₹10 lakh in metropolitan centres and up to ₹6 lakh in other centres for repairs to damaged dwelling units conforming to the overall cost of the dwelling unit as prescribed in para 12.1. 12.3 Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to dwelling units with carpet area of not more than 60 sq.m. 5 2 0 12.4 Bank loans for affordable housing projects2 using at least 50% of FAR/FSI , 1 for dwelling units with carpet area of no0t more than 60 sq.m. ril p A 12.5 Bank loans to HFCs (approved b y NHB for their refinance) for on-lending, f . e up to ₹20 lakh for individw.ual borrowers, for purchase/construction/ n reconstruction of individuwal dwelling units or for slum clearance and a r d rehabilitation of slum dhwellers, subject to conditions specified in para 23 and t Wi 24. 12.6 Outstanding deposits with NHB on account of priority sector shortfall. 13. Social Infrastructure Bank loans to social infrastructure sector as per limits prescribed below are eligible for priority sector classification 13.1. Bank loans up to a limit of ₹5 crore per borrower for setting up schools, drinking water facilities and sanitation facilities including construction/ refurbishment of household toilets and water improvements at household level, etc. and loans up to a limit of ₹10 crore per borrower for building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI centres. In case of UCBs, the above limits are applicable only in centres having a population of less than one lakh. 13Master Directions - Priority Sector Lending – Targets and Classification - 2020 13.2. # Bank loans to MFIs extended for on-lending to individuals and also to members of SHGs/JLGs for water and sanitation facilities subject to the criteria laid down in paragraph 21 of these Master Directions. # not applicable to RRBs, UCBs and SFBs. 14. Renewable Energy Bank loans up to a limit of ₹30 crore to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities, viz., street lighting systems and remote village electrification etc., will be eligible for Priority Sector classification. For individual households, the loan limit will be ₹10 lakh per borrower. 15. Others 5 2 0 The following loans as per the prescribed limit2s are eligible for priority sector , 1 0 classification: ril p A 15.1. Loans provided directly by banks f to individuals and individual members of . e . SHG/JLG satisfying the critewria as prescribed in Master Direction on n w Regulatory Framework foar Microfinance Loans Directions, dated March 14, r d h 2022. t Wi 15.2. Loans not exceeding ₹2.00 lakh provided by banks to SHG/JLG for activities other than agriculture or MSME, viz., loans for meeting social needs, construction or repair of house, construction of toilets or any viable common activity started by SHGs. 15.3. Loans to distressed persons [other than distressed farmers indebted to non- institutional lenders] not exceeding ₹1.00 lakh per borrower to prepay their debt to non-institutional lenders. 15.4. Loans sanctioned to State Sponsored Organisations for Scheduled Castes/ Scheduled Tribes for the specific purpose of purchase and supply of inputs and/or the marketing of the outputs of the beneficiaries of these organisations. 14Master Directions - Priority Sector Lending – Targets and Classification - 2020 15.5. Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that are engaged in activities other than Agriculture or MSME. 16. Weaker Sections 16.1 Priority sector loans to the following borrowers will be considered as lending under Weaker Sections category: (i) Small and Marginal Farmers (ii) Artisans, village and cottage industries where individual credit limits do not exceed ₹1 lakh (iii) Beneficiaries under Government Sponsored Schemes such as National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) (iv) Scheduled Castes and Scheduled Tribes (v) Beneficiaries of Differential Rate of Interest (DRI) scheme (vi) Self Help Groups 5 2 (vii) Distressed farmers indebted to non-institutio0nal lenders 2 , (viii) Distressed persons other than farmers, w1ith loan amount not exceeding ₹1 0 lakh per borrower to prepay their de rbilt to non-institutional lenders p (ix) Individual women beneficiaries uAp to ₹1 lakh per borrower (For UCBs, f . existing loans to women wilel continue to be classified under weaker . w sections till their maturity/re payment.) n w (x) Persons with disabilitieas r d (xi) Minority communitiehs as may be notified by Government of India from time t to time. Wi 16.2 Overdraft availed by PMJDY account holders as per limits and conditions prescribed by Department of Financial Services, Ministry of Finance from time to time may be classified under Weaker Sections. 16.3 In States, where one of the minority communities notified is, in fact, in majority, item (xi) will cover only the other notified minorities. These States/ Union Territories are Punjab, Meghalaya, Mizoram, Nagaland, Lakshadweep and Jammu & Kashmir. 15Master Directions - Priority Sector Lending – Targets and Classification - 2020 CHAPTER IV MISCELLANEOUS 17. Investments by banks in securitisation notes (not applicable to RRBs and UCBs) Investments by banks in ‘securitisation notes’, representing loans to various categories of priority sector, except 'others' category, are eligible for classification under respective categories of priority sector depending on the underlying assets provided: (i) The assets are originated by banks and financial institutions and are eligible to be classified as priority sector advances prior to securitisation and fulfil the Reserve Bank of India guidelines on ‘Securitisation of Standard Assets’ issued vide Master Directions DOR.STR.REC.53/21.04.177/2021-22 dated September 24, 2021 and updated from time to time. 5 2 0 2 (ii) The all-inclusive interest charged to the ult imate borrower by the originating , 1 0 entity should not exceed the investing ri lb ank’s MCLR + 10% or EBLR + 14%. p A f . (iii) The investments in securitisatioen notes originated by MFIs, which comply . w with the guidelines in Paragrnaph 21 of these Master Directions are exempted w a from this interest cap as rthere are separate caps on margin and interest rate d h t for MFIs. Wi (iv) Investment by banks in securitisation notes with loans against gold jewellery originated by NBFCs as underlying, are not eligible for priority sector status. 18. Transfer of Assets through Direct Assignment /Outright purchase (not applicable to RRBs and UCBs) Assignment/outright purchase of pool of assets by banks representing loans under various categories of priority sector, except the ‘others’ category, will be eligible for classification under respective categories of priority sector provided: (i) The assets are originated by banks and financial institutions which are eligible to be classified as priority sector advances prior to the purchase and fulfil the Reserve Bank of India guidelines on ‘Transfer of Loan Exposures’ 16Master Directions - Priority Sector Lending – Targets and Classification - 2020 issued vide Master Directions DOR.STR.REC.51/21.04.048/2021-22 dated September 24, 2021 and updated from time to time. (ii) The all-inclusive interest charged to the ultimate borrower by the originating entity should not exceed the investing bank’s MCLR + 10% or EBLR + 14%. (iii) The Assignments/Outright purchases of eligible priority sector loans from MFIs, which comply with the guidelines in Paragraph 21 of these Master Directions are exempted from this interest rate cap as there are separate caps on margin and interest rate for MFIs. (iv) When the bank undertakes outright purchase of loan assets (eligible to be classified under priority sector) from banks/ financial institutions, they must report the outstanding amount actually disbursed to priority sector borrowers and not the premium embedded am5ount paid to the seller. 2 0 2 (v) Loans against gold jewellery acquired by 1b,anks from NBFCs are not eligible 0 for priority sector status. ril p A .f e 19. Inter Bank Participation Certificatwe.s (IBPCs) (not applicable to UCBs) n w (i) IBPCs bought by banks, aon a risk sharing basis, are eligible for classification r d h under respective cattegories of priority sector, provided the underlying Wi assets are eligible to be categorized under the respective categories of priority sector and the banks fulfil the Reserve Bank of India guidelines on IBPCs issued vide circular DBOD.No.BP.BC.57/62-88 dated December 31, 1988 and updated from time to time. (ii) IBPCs bought by banks on risk sharing basis relating to ‘Export Credit’ as per Para 10, shall be classified from purchasing bank’s perspective for priority sector categorization. However, in such a scenario, the issuing bank shall certify that the underlying asset is ‘Export Credit’, in addition to the due diligence required to be undertaken by the issuing and the purchasing bank as per guidelines in this regard. 17Master Directions - Priority Sector Lending – Targets and Classification - 2020 20. Priority Sector Lending Certificates (PSLCs) The outstanding PSLCs bought by banks will be eligible for classification under respective categories of priority sector provided the underlying assets originated by banks are eligible to be classified as priority sector advances and fulfil the Reserve Bank of India guidelines on Priority Sector Lending Certificates issued vide Circular FIDD.CO.Plan.BC.23/04.09.001/2015-16 dated April 7, 2016 read with Circular FIDD.CO.PSD.BC.No.12/04.09.001/2024-25 dated March 24, 2025. SFBs shall further be guided by the terms and conditions specified in Para 1.9 of DBR circular No. DBR.NBD.26/16.13.218/2016-17 dated October 6, 2016 on credit risk transfer and portfolio sales/purchases. 21. Bank loans to MFIs (NBFC-MFIs, Societies, Trusts, etc.) for on-lending (not applicable to RRBs, UCBs and LABs) 21.1 Banks other than SFBs are allowed to extend cre5dit to registered NBFC-MFIs 2 0 and other MFIs (Societies, Trusts etc.) which are m2embers of RBI recognised SRO , 1 0 for the sector, for on-lending to individuals an d also to members of SHGs / JLGs. ril p 21.2 With effect from May 5, 2021, SFBAs are allowed to extend fresh credit to f . e registered NBFC-MFIs and other MFI.s (Societies, Trusts, etc.) which are members w n of RBI recognised ‘Self-Regulatowry Organisation’ of the sector, and which have a a r ‘gross loan portfolio’ (GLP) odf up to ₹500 crore as on March 31 of the previous h t Wi year, for the purpose of on-lending to individuals. In case the GLP of the NBFC- MFIs/other MFIs exceeds the stipulated limit at a later date, all priority sector loans created prior to exceeding the GLP limit will continue to be classified by the SFBs as PSL till repayment/maturity, whichever is earlier. Bank credit as above will be allowed up to an overall limit of 10 percent of an individual bank’s total priority sector lending. These limits shall be computed by averaging across four quarters of the financial year, to determine adherence to the prescribed cap. 21.3 Loans disbursed by banks under para 21.1 and 21.2 above are eligible for categorisation as priority sector advance under respective categories viz., Agriculture, MSME, Social Infrastructure and Others, provided the MFIs adhere to the conditions prescribed in Chapter II (xx) and Chapter VIII of Master Directions DNBR PD.007 and Chapter II (xx) and Chapter IX of Master Directions DNBR 18Master Directions - Priority Sector Lending – Targets and Classification - 2020 PD.008/03.10.119/2016-17 dated September 1, 2016, as updated from time to time. 22. Bank loans to NBFCs for on-lending (not applicable to RRBs, UCBs, SFBs and LABs) Bank credit to registered NBFCs (other than MFIs) for on-lending will be eligible for classification as priority sector under respective categories subject to the following conditions: (i) Agriculture: On-lending by NBFCs for ‘Term lending’ component under Agriculture will be allowed up to ₹ 10 lakh per borrower. (ii) Micro & Small enterprises: On-lending by NBFC will be allowed up to ₹ 20 lakh per borrower. 5 2 0 2 23. Bank loans to HFCs for on-lending (not applic able to RRBs, SFBs and LABs) , 1 0 Bank credit to Housing Finance Companie risl (HFCs), approved by NHB for their p A refinance, for on-lending for the purpose of purchase/construction/ reconstruction f . e of individual dwelling units or for slumw. clearance and rehabilitation of slum dwellers, n subject to an aggregate loan limitw of ₹20 lakh per borrower. Banks should maintain a r necessary borrower-wise detadils of the underlying portfolio. h t Wi 24. Cap on On-lending Bank credit to NBFCs (including HFCs) for on-lending as applicable in para 22 and 23 above, will be allowed up to an overall limit of five percent of individual bank’s total priority sector lending. Banks shall compute the eligible portfolio under on- lending mechanism by averaging across four quarters, to determine adherence to the prescribed cap. 25. Co-lending by Banks and NBFCs to priority sector (not applicable to RRBs, UCBs, SFBs and LABs) All Scheduled Commercial Banks (excluding SFBs, RRBs, UCBs and LABs) are permitted to co-lend with all registered Non-Banking Financial Companies (including Housing Finance Companies) for lending to the priority sector. Detailed guidelines, in this regard, have been issued vide our circular 19Master Directions - Priority Sector Lending – Targets and Classification - 2020 FIDD.CO.Plan.BC.No.8/04.09.01/2020-21 dated November 5, 2020. For the sake of business continuity and to ensure uninterrupted flow of credit to the priority sector, banks may continue existing arrangement as per earlier guidelines on co-origination, issued vide our circular No. FIDD.CO.Plan.BC/08/04.09.01/2018-19 dated September 21, 2018, till the Board approved co-lending policy is put in place by them. 26. COVID19 measures for PSL (i) In terms of the press release 2019-2020/2237 dated April 17, 2020 notifying the TLTRO 2.0 scheme, banks were allowed to exclude the face value of such securities kept in the HTM category from computation of adjusted net bank credit (ANBC) for the purpose of determining priority sector targets/sub-targets as shown in para 6.1. This exemption is only applicable to the funds availed under TLTRO 2.0. 5 2 (ii) In terms of press release 2019-2020/2276 date0d April 27, 2020, the face value 2 , of securities acquired under the SLF-MF an1d kept in the HTM category will not 0 be reckoned for computation of adjupri sl ted net bank credit (ANBC) for the A purpose of determining priority se.fctor targets/sub-targets as shown in para e . w 6.1. n w (iii) In terms of press release 20a19-2020/2294 dated April 30, 2020, the regulatory r d h benefits announced untder the SLF-MF scheme will be extended to all banks, Wi irrespective of whether they avail funding from the Reserve Bank or deploy their own resources under the above-mentioned scheme and the same can be reckoned for computation of adjusted net bank credit (ANBC) for the purpose of determining priority sector targets/sub-targets as shown in para 6.1. (iv) In terms of press release: 2021-2022/177 dated May 7, 2021, an on-tap liquidity window of ₹50,000 crore with tenors of up to three years at the repo rate till March 31, 2022 has been opened to boost provision of immediate liquidity for ramping up COVID-related healthcare infrastructure and services in the country. Banks are expected to create a COVID loan book under the scheme. These loans will continue to be classified under priority sector till repayment or maturity, whichever is earlier. Banks may deliver these loans to borrowers directly or through intermediary financial entities regulated by the 20Master Directions - Priority Sector Lending – Targets and Classification - 2020 RBI. Banks desirous of deploying their own resources without availing funds from the RBI under the scheme for lending to the specified segments mentioned above will also be eligible for the incentives stipulated as above. (v) In terms of press release: 2021-2022/323 dated June 4, 2021, a separate liquidity window of ₹15,000 crore with tenors of up to three years at the repo rate till March 31, 2022 has been opened for certain contact-intensive sectors i.e., hotels and restaurants; tourism - travel agents, tour operators and adventure/heritage facilities; aviation ancillary services - ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organisers, spa clinics, and beauty parlours/saloons. Banks are expected to create a separate COVID loan book under the scheme. Banks desirous of deploying their own resources without availing funds from the RBI under the scheme for lending 5 to the specified segments mentioned above 2will also be eligible for this 0 2 incentive. , 1 0 27. Monitoring of Priority Sector Lending taprril g ets A To ensure continuous flow of credit to .pfriority sector, the compliance of banks will e . w be monitored on ‘quarterly’ basis. The data on priority sector advances shall be n w furnished by banks to FIDD, Ceantral Office at quarterly and annual intervals as per r d h the reporting format (qua Writterly and annual), within fifteen days and one month, respectively from the date of ending of each quarter and financial year in terms of circular FIDD.CO.Plan.CO.BC.No.17/04.09.001/2016-17 dated October 6, 2016. In respect of RRBs, the data on priority sector advances, in the above format, shall be furnished to NABARD at quarterly and annual intervals. UCBs shall be guided by Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 dated February 27, 2024, as updated from time to time, as regards submission of data on priority sector advances. 28. Non-achievement of Priority Sector targets (i) Banks having any shortfall in lending to priority sector shall be allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other funds with NABARD/NHB/SIDBI/ MUDRA Ltd., as decided by the Reserve Bank from time to time. 21Master Directions - Priority Sector Lending – Targets and Classification - 2020 (ii) With effect from March 31, 2023, all UCBs (excluding those under all-inclusive directions) will be required to contribute to Rural Infrastructure Development Fund (RIDF) established with NABARD and other funds with NABARD / NHB / SIDBI / MUDRA Ltd., against their priority sector lending (PSL) shortfall vis-à- vis the prescribed target. (iii) While computing priority sector target achievement, shortfall / excess lending for each quarter will be monitored separately. A simple average of all quarters will be arrived at and considered for computation of overall shortfall / excess at the end of the year. The same method will be followed for calculating the achievement of priority sector sub-targets. (Illustration given in Annex IV). (iv) The interest rates on banks’ contribution to RIDF or any other funds, tenure of deposits, etc. shall be fixed by Reserve Bank of India from time to time. 5 2 (v) The mis-classifications reported by the Re0serve Bank’s Department of 2 Supervision (DoS) (NABARD in respect of R1,RBs) would be adjusted/ reduced 0 from the achievement of that year, to rwil hich the amount of misclassification p A pertains, for allocation to various funf ds in subsequent years. . e w. (vi) Non-achievement of priority sen ctor targets and sub-targets will be taken into w a account while granting regurlatory clearances/approvals for various purposes. d h t Wi 29. Common guidelines for priority sector loans Banks should comply with the following common guidelines for all categories of advances under the priority sector. (i) Rate of interest: The rates of interest on bank loans will be as per directives issued by Department of Regulation (DoR), RBI from time to time. (ii) Service charges: No loan related and ad hoc service charges/inspection charges should be levied on priority sector loans up to ₹25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per member and not to the group as a whole. (iii) Receipt, Sanction/Rejection/Disbursement Register: A register/ electronic record should be maintained by the bank wherein the date of receipt, sanction/rejection/disbursement with reasons thereof, etc. should be 22Master Directions - Priority Sector Lending – Targets and Classification - 2020 recorded. The register/electronic record should be made available to all inspecting agencies. (iv) Issue of acknowledgement of loan applications: Banks should provide acknowledgement for loan applications received under priority sector loans. Bank Boards should prescribe a time limit within which the bank communicates its decision in writing to the applicants. ~*~*~*~*~*~*~ 5 2 0 2 , 1 0 ril p A f . e . w n w a r d h t Wi 23ANNEX – I A List of Districts with comparatively high PSL credit Sl.No State District name 1 Andaman & Nicobar Islands South Andaman 2 Andhra Pradesh Bapatla 3 Andhra Pradesh Dr. B.R. Ambedkar Konaseema 4 Andhra Pradesh East Godavari 5 Andhra Pradesh Eluru 6 Andhra Pradesh Guntur 7 Andhra Pradesh Kakinada 8 Andhra Pradesh Krishna 9 Andhra Pradesh NTR 10 Andhra Pradesh Palnadu 11 Andhra Pradesh Prakasam 12 Andhra Pradesh Sri Potti Sriramulu Nellore 13 Andhra Pradesh Tirupati 14 Andhra Pradesh Visakhapatnam 15 Andhra Pradesh West Godavari 16 Andhra Pradesh Y.S.R. 17 Arunachal Pradesh Papump5are 2 18 Assam Kamru0p Metropolitan 2 19 Bihar Pa1,tna 0 20 Chandigarh ril Chandigarh p 21 Chhattisgarh A Bilaspur f 22 Chhattisgarh e. Raipur . w 23 Dadra and Nagar Haveli and Daman Dadra & Nagar Haveli n and Diu w a 24 Dadra and Nagar Haveli rand Daman Daman d h and Diu t Wi 25 Goa North Goa 26 Goa South Goa 27 Gujarat Ahmedabad 28 Gujarat Bharuch 29 Gujarat Gandhinagar 30 Gujarat Jamnagar 31 Gujarat Kachchh 32 Gujarat Mahesana 33 Gujarat Morbi 34 Gujarat Porbandar 35 Gujarat Rajkot 36 Gujarat Surat 37 Gujarat Vadodara 38 Gujarat Valsad 39 Haryana Ambala 40 Haryana Faridabad 41 Haryana Fatehabad 42 Haryana Gurugram 24ANNEX – I A List of Districts with comparatively high PSL credit Sl.No State District name 43 Haryana Hisar 44 Haryana Jhajjar 45 Haryana Jind 46 Haryana Kaithal 47 Haryana Karnal 48 Haryana Kurukshetra 49 Haryana Panchkula 50 Haryana Panipat 51 Haryana Rewari 52 Haryana Rohtak 53 Haryana Sirsa 54 Haryana Sonipat 55 Haryana Yamunanagar 56 Himachal Pradesh Kulu 57 Himachal Pradesh Shimla 58 Himachal Pradesh Sirmaur 59 Himachal Pradesh Solan 5 2 60 Jammu and Kashmir Jamm0u 2 61 Jammu and Kashmir Pu1,lwama 0 62 Jammu and Kashmir ril Shopian p 63 Jammu and Kashmir A Srinagar f 64 Jharkhand e. Ranchi . w 65 Karnataka Bengaluru Rural n 66 Karnataka w Bengaluru Urban a r 67 Karnataka d Chikkamagaluru h 68 Karnataka Wit Dakshin Kannad 69 Karnataka Dharwad 70 Karnataka Hassan 71 Karnataka Kodagu 72 Karnataka Mysuru 73 Karnataka Ramanagara 74 Karnataka Shivamogga 75 Karnataka Udipi 76 Kerala Alapuzha 77 Kerala Ernakulam 78 Kerala Idukki 79 Kerala Kannur 80 Kerala Kasaragod 81 Kerala Kollam 82 Kerala Kottayam 83 Kerala Kozhikode 84 Kerala Palakkad 85 Kerala Pathanamthitta 25ANNEX – I A List of Districts with comparatively high PSL credit Sl.No State District name 86 Kerala Thiruvananthapuram 87 Kerala Thrissur 88 Kerala Wayanad 89 Ladakh Leh Ladakh 90 Madhya Pradesh Bhopal 91 Madhya Pradesh East Nimar 92 Madhya Pradesh Gwalior 93 Madhya Pradesh Harda 94 Madhya Pradesh Indore 95 Madhya Pradesh Jabalpur 96 Madhya Pradesh Narmadapuram 97 Madhya Pradesh Ratlam 98 Madhya Pradesh Ujjain 99 Maharashtra Chhatrapati Sambhajinagar 100 Maharashtra Kolhapur 101 Maharashtra Mumbai 102 Maharashtra Mumbai 5Suburban 2 103 Maharashtra Nagpu0r 2 104 Maharashtra Na1,sik 0 105 Maharashtra ril Pune p 106 Maharashtra A Raigad f 107 Maharashtra e. Thane . w 108 NCT of Delhi Central Delhi n 109 NCT of Delhi w East Delhi a r 110 NCT of Delhi d New Delhi h 111 NCT of Delhi Wit North Delhi 112 NCT of Delhi Shahdara 113 NCT of Delhi South Delhi 114 NCT of Delhi South-East Delhi 115 NCT of Delhi West Delhi 116 Odisha Khurda 117 Puducherry Karaikal 118 Puducherry Mahe 119 Puducherry Puducherry 120 Puducherry Yanam 121 Punjab Amritsar 122 Punjab Barnala 123 Punjab Bathinda 124 Punjab Faridkot 125 Punjab Fatehgarh Sahib 126 Punjab Fazilka 127 Punjab Jalandhar 128 Punjab Kapurthala 26ANNEX – I A List of Districts with comparatively high PSL credit Sl.No State District name 129 Punjab Ludhiana 130 Punjab Mansa 131 Punjab Moga 132 Punjab Muktsar 133 Punjab Patiala 134 Punjab Sahibzada Ajit Singh Nagar 135 Punjab Sangrur 136 Rajasthan Ajmer 137 Rajasthan Bhilwara 138 Rajasthan Bikaner 139 Rajasthan Ganganagar 140 Rajasthan Hanumangarh 141 Rajasthan Jaipur 142 Rajasthan Jodhpur 143 Rajasthan Kota 144 Rajasthan Neem Ka Thana 145 Tamil Nadu Ariyalur 5 2 146 Tamil Nadu Cheng0alpattu 2 147 Tamil Nadu Ch1,ennai 0 148 Tamil Nadu ril Coimbatore p 149 Tamil Nadu A Cuddalore f 150 Tamil Nadu e. Dharmapuri . w 151 Tamil Nadu Dindigul n 152 Tamil Nadu w Erode a r 153 Tamil Nadu d Kallakurichi h 154 Tamil Nadu Wit Kanyakumari 155 Tamil Nadu Karur 156 Tamil Nadu Krishnagiri 157 Tamil Nadu Madurai 158 Tamil Nadu Mayiladuthurai 159 Tamil Nadu Namakkal 160 Tamil Nadu Nilgiris 161 Tamil Nadu Perambalur 162 Tamil Nadu Pudukkottai 163 Tamil Nadu Ramanathapuram 164 Tamil Nadu Ranipet 165 Tamil Nadu Salem 166 Tamil Nadu Sivaganga 167 Tamil Nadu Tenkasi 168 Tamil Nadu Thanjavur 169 Tamil Nadu Theni 170 Tamil Nadu Thiruvallur 171 Tamil Nadu Thiruvarur 27ANNEX – I A List of Districts with comparatively high PSL credit Sl.No State District name 172 Tamil Nadu Tiruchirapalli 173 Tamil Nadu Tirunelvali 174 Tamil Nadu Tiruppur 175 Tamil Nadu Tiruvannamalai 176 Tamil Nadu Toothukudi 177 Tamil Nadu Virudhunagar 178 Telangana Hanumakonda 179 Telangana Hyderabad 180 Telangana Jangaon 181 Telangana Medchal-Malkajgiri 182 Telangana Rangareddi 183 Telangana Sangareddy 184 Telangana Suryapet 185 Uttar Pradesh Agra 186 Uttar Pradesh Gautam Buddha Nagar 187 Uttar Pradesh Ghaziabad 188 Uttar Pradesh Kanpur N5agar 2 189 Uttar Pradesh Luckn0ow 2 190 Uttar Pradesh Me1,erut 0 191 Uttarakhand ril Dehra Dun p 192 Uttarakhand A Haridwar f 193 Uttarakhand e. Nainital . w 194 Uttarakhand Udham Singh Nagar n 195 West Bengal w Alipurduar a r 196 West Bengal d Darjiling h 197 West Bengal Wit Kalimpong 198 West Bengal Kolkata 28ANNEX – I B List of Districts with comparatively low PSL credit Sl.No State District name 1 Andaman & Nicobar Islands Nicobar 2 Andhra Pradesh Alluri Sitharama Raju 3 Arunachal Pradesh Anjaw 4 Arunachal Pradesh Chunglang 5 Arunachal Pradesh East Kameng 6 Arunachal Pradesh East Siang 7 Arunachal Pradesh Kamle 8 Arunachal Pradesh Kra Daadi 9 Arunachal Pradesh Kurung Kumey 10 Arunachal Pradesh Leparada 11 Arunachal Pradesh Lohit 12 Arunachal Pradesh Longding 13 Arunachal Pradesh Lower Dibang Valley 14 Arunachal Pradesh Lower Siang 15 Arunachal Pradesh Lower Subansiri 16 Arunachal Pradesh Namsai 17 Arunachal Pradesh Pakke Kessang 5 18 Arunachal Pradesh Shi-Yom2i 0 19 Arunachal Pradesh Siang2 , 20 Arunachal Pradesh Ta1wang 0 21 Arunachal Pradesh rilTirap p 22 Arunachal Pradesh A Upper Siang f . 23 Arunachal Pradesh e Upper Subansiri . w 24 Arunachal Pradesh West Siang n 25 Assam w Bajali a r 26 Assam d Baksa h 27 Assam Wit Charaideo 28 Assam Chirang 29 Assam Dhemaji 30 Assam Dhubri 31 Assam Dima Hasao 32 Assam Goalpara 33 Assam Hailakandi 34 Assam Hojai 35 Assam Karbi Anglong 36 Assam Karimganj 37 Assam Kokrajhar 38 Assam Majuli 39 Assam Morigaon 40 Assam Nagaon 41 Assam South Salmara-Mankachar 42 Assam Udalguri 43 Assam West Karbi Anglong 44 Bihar Arwal 45 Bihar Banka 46 Bihar Bhojpur 29ANNEX – I B List of Districts with comparatively low PSL credit 47 Bihar Buxar 48 Bihar Gopalganj 49 Bihar Jamui 50 Bihar Jehanabad 51 Bihar Kaimur 52 Bihar Khagaria 53 Bihar Lakhisarai 54 Bihar Madhepura 55 Bihar Madhubani 56 Bihar Munger 57 Bihar Nalanda 58 Bihar Nawada 59 Bihar Paschimi Champaran 60 Bihar Saran 61 Bihar Sheikhpura 62 Bihar Sheohar 63 Bihar Sitamarhi 64 Bihar Siwan 5 65 Bihar Supaul 2 0 66 Chhattisgarh Balra2mpur , 67 Chhattisgarh Da1kshin Bastar Dantewada 0 68 Chhattisgarh rilGariyaband p 69 Chhattisgarh A Gaurela-Pendra-Marwahi f . 70 Chhattisgarh e Jashpur . w 71 Chhattisgarh Khairagarh-Chhuikhadan-Gandai n 72 Chhattisgarh w Kondagaon a r 73 Chhattisgarh d Koriya h 74 Chhattisgarh Wit Manendragarh-Chirmiri-Bharatpur 75 Chhattisgarh Mohla-Manpur-Ambagarh Chouki 76 Chhattisgarh Narayanpur 77 Chhattisgarh Sakti 78 Chhattisgarh Sarangarh-Bilaigarh 79 Chhattisgarh Sukma 80 Chhattisgarh Surajpur 81 Chhattisgarh Surguja 82 Gujarat Dangs 83 Haryana Nuh 84 Jharkhand Chatra 85 Jharkhand Dumka 86 Jharkhand Garhwa 87 Jharkhand Godda 88 Jharkhand Gumla 89 Jharkhand Jamtara 90 Jharkhand Khunti 91 Jharkhand Latehar 92 Jharkhand Palamau 93 Jharkhand Sahebganj 30ANNEX – I B List of Districts with comparatively low PSL credit 94 Jharkhand Simdega 95 Madhya Pradesh Alirajpur 96 Madhya Pradesh Anuppur 97 Madhya Pradesh Bhind 98 Madhya Pradesh Dindori 99 Madhya Pradesh Niwari 100 Madhya Pradesh Panna 101 Madhya Pradesh Sidhi 102 Madhya Pradesh Tikamgarh 103 Madhya Pradesh Umaria 104 Maharashtra Gadchiroli 105 Manipur Bishenpur 106 Manipur Chandel 107 Manipur Churachandpur 108 Manipur Imphal East 109 Manipur Jiribam 110 Manipur Kakching 111 Manipur Kamjong 5 112 Manipur Kangpo2kpi 0 113 Manipur None2y , 114 Manipur Ph1erzawal 0 115 Manipur rilSenapati p 116 Manipur A Tamenglong f . 117 Manipur e Tengnoupal . w 118 Manipur Thoubal n 119 Manipur w Ukhrul a r 120 Meghalaya d East Garo Hills h 121 Meghalaya Wit East Jaintia Hills 122 Meghalaya Eastern West Khasi Hills 123 Meghalaya North Garo Hills 124 Meghalaya South Garo Hills 125 Meghalaya South West Garo Hills 126 Meghalaya South West Khasi Hills 127 Meghalaya West Garo Hills 128 Meghalaya West Jaintia Hills 129 Meghalaya West Khasi Hills 130 Mizoram Champhai 131 Mizoram Hnahthial 132 Mizoram Kolasib 133 Mizoram Lawngtlai 134 Mizoram Lunglei 135 Mizoram Mamit 136 Mizoram Saitual 137 Mizoram Serchhip 138 Mizoram Siaha 139 Nagaland Chumoukedima 140 Nagaland Kiphire 31ANNEX – I B List of Districts with comparatively low PSL credit 141 Nagaland Longleng 142 Nagaland Mokokchung 143 Nagaland Mon 144 Nagaland Niuland 145 Nagaland Noklak 146 Nagaland Peren 147 Nagaland Phek 148 Nagaland Shamator 149 Nagaland Tseminyu 150 Nagaland Tuensang 151 Nagaland Wokha 152 Nagaland Zunheboto 153 NCT of Delhi North-East Delhi 154 Odisha Malkangiri 155 Odisha Nawrangpur 156 Rajasthan Deeg 157 Rajasthan Gangapurcity 158 Rajasthan Jodhpur Rural 5 159 Rajasthan Salumb2er 0 160 Rajasthan Sanc2hore , 161 Sikkim Gy1alshing 0 162 Sikkim rilSoreng p 163 Telangana A Adilabad f . 164 Tripura e Dhalai . w 165 Tripura Gomati n 166 Tripura w Khowai a r 167 Tripura d North Tripura h 168 Tripura Wit Sepahijala 169 Uttar Pradesh Amroha 170 Uttar Pradesh Azamgarh 171 Uttar Pradesh Ballia 172 Uttar Pradesh Balrampur 173 Uttar Pradesh Banda 174 Uttar Pradesh Basti 175 Uttar Pradesh Chitrakoot 176 Uttar Pradesh Farrukhabad 177 Uttar Pradesh Gonda 178 Uttar Pradesh Jaunpur 179 Uttar Pradesh Kanpur Dehat 180 Uttar Pradesh Kaushambi 181 Uttar Pradesh Kushi Nagar 182 Uttar Pradesh Maharajganj 183 Uttar Pradesh Mau 184 Uttar Pradesh Sant Kabir Nagar 185 Uttar Pradesh Shravasti 186 Uttar Pradesh Sidharthanagar 187 Uttar Pradesh Sitapur 32ANNEX – I B List of Districts with comparatively low PSL credit 188 Uttar Pradesh Sultanpur 189 Uttar Pradesh Unnao 190 Uttarakhand Bageshwar 191 Uttarakhand Chamoli 192 Uttarakhand Pithoragarh 193 Uttarakhand Rudraprayag 194 Uttarakhand Tehri Garhwal 195 West Bengal Jhargram 196 West Bengal Puruliya 5 2 0 2 , 1 0 ril p A f . e . w n w a r d h t Wi 33ANNEX – II An indicative list of eligible activities under Agriculture infrastructure and Ancillary activities is given below: Agriculture i) Loans for construction of storage facilities (warehouse, market infrastructure yards, godowns and silos) including cold storage units/cold storage chains designed to store agriculture produce/products, irrespective of their location. ii) Soil conservation and watershed development. iii) Plant tissue culture and agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting. iv) Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants. 5 Ancillary (i) Loans for setting up of Agri-clinics2 and Agri-business centres. 0 activities 2 (ii) Loans to Custom Service , Units managed by individuals, 1 0 institutions or organization rs il who maintain a fleet of tractors, p A bulldozers, well-boring e quipment, threshers, combines, etc., and f . e undertake farm work wf.or farmers on contract basis. n (iii) Bank loans tow Primary Agricultural Credit Societies (PACS), a r d Farmers’ Serhvice Societies (FSS) and Large-sized Adivasi Multi- t Wi Purpose Societies (LAMPS) for on-lending to agriculture. (iv) Loans sanctioned by banks to MFIs for on-lending to agriculture sector as per the conditions specified in paragraph 21 of these Master Directions. (v) Loans sanctioned by banks to registered NBFCs (other than MFIs) as per conditions specified in paragraph 22 of these Master Directions. 34ANNEX – III Indicative list of Permissible Activities under Food Processing Sector as shared by Ministry of Food Processing Industries (MoFPI) 1. Cleaning, Air Cooling (Field Heat Removal), Sorting, Grading/Sizing, Packaging, Warehousing, Distribution of Fruits & Vegetables etc. 2. Transportation including in refrigerated van/Cold Chain infrastructure system Packaging and storage including techniques like Silo, Hermetic storage; pest management. 3. Storage at low temperature/Cold Storage/Modified/Controlled Atmosphere packaging, Refrigeration/Chilling etc. 4. Primary and/or Minimal Processing of F&V: - Blanching (Vegetables), Peeling, Cutting, Storage, Distribution at Low temperature, vacuum packaging etc. 5. Sun Drying and Mechanical Drying: - Solar Drying, Hot air drying, Dehydration, hybrid drying, fluidized bed drying, refractive window drying, drum drying, radio frequency drying, Lyophilisation (Freeze Drying), Va5cuum Drying, Spray Drying, 2 0 De-hydro-freezing etc. 2 , 1 0 6. Preservation through various methods; both ril traditional and modern. p A f 7. Frozen Products: Individually Quick Freo.zen (10F) of Fruit, Vegetables, Meat, Fish, . w Sea Foods etc. n w a 8. Milk and Milk products procedsrsing, including their transportation, packaging and h storage. Wit 9. Canning of Fruit, Vegetables including Mushrooms, Meat, Fish, crustaceans, molluscs, other Sea Foods etc. 10. Milling Grains, Legumes & Pulses, Preparation of their by-products such as Bran Oil, Cattle Feed/Poultry feed etc. 11. Processing of F&V into different products such as juices, concentrates, sauces, jam, jellies, marmalades, Chips, Flakes, Powders etc. 12. Processing of Grains & Pulses, Fish, Meat, Poultry, Sea Foods, Egg etc. into their different products including extruded, popped, puffed and flaked products and their packaging and storage including fumigation, Smoking etc. 13. Oil seed Extraction- Rendering, Pressing, Hydrogenation, Refining with Extraction, Filling/packaging etc. 35ANNEX – III 14. Spices, Seasoning and Condiments - Grinding, Crushing, Milling, Sieving, Mixing, Blending, Roasting, Packaging, Storage, Distribution. 15. Production of fermented Products and Alcoholic- Wines, Vinegar, Milk products, Prebiotics, Probiotics etc. 16. Production of beverages - Juices, RTS, Nectar, Squash, Cordial, Syrups/Sherbets, Soups, Carbonated Beverages etc. 17. Production of Cocoa, Coffee, Chicory and Tea Products; including Cocoa Butter, Cocoa Powder, Chocolates, wafers etc. 18. Production of Bakery and Confectionary Products - Biscuits, Bread, Cakes, Cookies, Toffee etc. 19. Production of Jaggery, Sugar, Khandasari etc from Sugarcane, Beet, Palm etc. 20. Production of apiary products (honey processing; both natural and artificial honey). 5 2 0 2 21. Production of Starch and Starch Products - Sago, Tapioca, Corn, Noodles, , 1 Macroni, Vermicelli etc, 0 pril A 22. Slaughtering of animals/ruminants/birds etc. and their processing. f . e . w 23. Nuts Processing; coconut-based pn roduct processing such as water, nuts etc. w a r d 24. Processing of other products such as Instant Mixes, Ready to Eat (RTE) retort- h t based products, ready to cWi ook and Beverages etc. 25. Nutraceutical products/functional foods/fortified food/enriched food preparation. 26. Production of Organic food products. 27. Processing of algal and fungal products (eg Spirulina, Mushrooms etc), including packaging and enhancement of shelf life. 28. Processing plantation crops, packaging, storage and enhancement of shelf life. 29. Production of food grade packaging material such as laminates, tetra packs, bottles, tin containers etc. 36ANNEX – IV Priority Sector achievement - Calculation of shortfall / excess Illustration: Tables No.1 and 2 below illustrate the method followed for computation of shortfall / excess in priority sector target achievement at the end of the financial year under the revised PSL guidelines. (Table 1) Amount in ₹ crore Quarter PSL targets Priority Sector Adjustments for weightage on Shortfall / ended (A) Amount incremental credit to identified Excess Outstanding districts as per para 7 of MD (B)+(C)-(A) (B) (C) June 329615 316938 1625 -11052 September 308826 311945 -810 2309 December 317694 319291 -819 778 March 324560 321347 2925 -288 Total 1280695 1269521 2921 -8253 5 2 Average 320174 317380 0 730 -2063 2 , 1 0 (Table 2) ril p Amount in ₹ crore A Quarter PSL Priority Sector Afd justments for weightage on Shortfall / . e ended targets Amount .incremental credit to identified Excess w (A) Outstanding n districts as per para 7 of MD (B)+(C)-(A) w (B) a (C) r d June 329615 3h27967 1500 -148 t Wi September 308826 312378 -729 2823 December 317694 327225 975 10506 March 324560 321315 -765 -4010 Total 1280695 1288885 981 9171 Average 320174 322221 245 2293 In the example given in Table - 1, the bank has overall shortfall of ₹2063 crore at the end of the financial year. In Table – 2, the bank has overall excess of ₹2293 crore at the end of the financial year. The Adjustments due to weightage on incremental credit in identified districts as per para 7, will be as per the data submitted by banks in the Automated Data Extraction Project (ADEPT). The same method will be followed for calculating the achievement of quarterly and yearly priority sector sub-targets. Note: The computation of priority sector targets/sub-targets achievement will be based on the ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposures, whichever is higher, as at the corresponding date of the preceding year. 37APPENDIX LIST OF CIRCULARS CONSOLIDATED Sr.# Circular No. Date Subject 1. FIDD.CO.PSD.BC.No.12/04. March 24, 2025 Priority Sector Lending Certificates 09.001/2024-25 2. DOR.CRE.REC. March 24, 2025 Review of Priority Sector Lending 69/07.10.002/2024-25 (PSL) Target – Urban Co-operative Banks (UCBs) 3. FIDD.CO.PSD.BC.No.7/04.0 June 21, 2024 Priority Sector Lending – 9.01/2024-25 Amendments to the Master Directions 4. DOR.CRE.REC.18/07.10.00 June 8, 2023 Priority Sector Lending (PSL) 2/2023-24 targets / sub-targets and contribution against shortfall in achievement of PSL targets – Primary (Urban) Co-operative Banks (UCBs) - Extension of time 5. CO.FIDD.PCD.No.S725/ August 11, 2022 Priority Sector Lending (PSL)- 04.09.001/2022-23 Target for Non-Corporate Farmers FY2022-23 6. FIDD.CO.Plan.BC.No.5/04.0 May 13, 2022 Lending by Commercial Banks to 9.001/2022-23 NBFCs and Small Finance Banks (SFBs) to NBFC-MFIs, for the 5purpose of on-lending to priority 2 0 sectors 2 7. FIDD.CO.Plan.BC.No.15/04. October 8, 202,1 Priority Sector Lending- Banks’ 1 09.01/2021-22 0 lending to NBFCs for on-lending – ril Extension of facility p 8. CO.FIDD.PCD.No.S414/04- AugustA 17, 2021 Priority Sector Lending (PSL) - 09-001/2021-22 f Target for Non-Corporate Farmers . e . FY2021-22 w 9. FIDD.CO.Plan.BC.No.10/04. May 5, 2021 Priority Sector Lending (PSL) - On- n 09.01/2021-22 w lending by Small Finance Banks a r (SFBs) to NBFC-MFIs d 10. FIDD.CO.Plan.BC.No.7/04h.0 April 7, 2021 Priority Sector Lending (PSL) – t 9.01/2021-22 Wi Increase in limits for bank lending against Negotiable Warehouse Receipts (NWRs) / electronic Negotiable Warehouse Receipts (eNWRs) 11. FIDD.CO.Plan.BC.No.8/04.0 April 7, 2021 Priority Sector Lending (PSL) - 9.01/2021-22 Lending by banks to NBFCs for On- Lending 12. CO.FIDD.PCD.No.S7850/04 February 16, 2021 Priority Sector Lending (PSL) – -09-001/2020-21 Interest Cap on Investment by Banks in Securitised Assets/Direct Assignment 13. CO.FIDD.PCD.No.S7519/04 February 15, 2021 Regional Rural Banks- Issue of -09-001/2020-21 Inter-Bank Participation Certificates 14. FIDD.CO.Plan.BC.No.8/04.0 November 5, 2020 Co-Lending by Banks and NBFCs 9.01/2020-21 to Priority Sector 15. DOR April 24, 2020 Non-achievement of Priority (PCB).BPD.Cir.No.12/09.09. Sector Lending Targets by Primary 002/2019-20 (Urban) Co-operative Banks (UCBs) - Contribution to the Rural Infrastructure Development Fund (RIDF) and other funds 16. FIDD.CO.Plan.BC.No.19/04. March 23, 2020 Priority Sector Lending - Lending 09.01/2019-20 by banks to NBFCs for On- Lending 38APPENDIX 17. FIDD.CO.Plan.BC.12/04.09. September 20, 2019 Priority Sector Lending (PSL)- 01/2019-20 Classification of Exports under Priority Sector 18. FIDD.CO.Plan.BC.No.11/04. September 19, 2019 Priority Sector Targets- Lending to 09.01/2019-20 Non-Corporate Farmers-FY 2019- 20 19. FIDD.CO.Plan.BC August 13, 2019 Priority Sector Lending – Lending 7/04.09.01/2019-20 by banks to NBFCs for On- Lending 20. Master Directions July 29, 2019 Master Directions – Priority Sector FIDD.CO.Plan.BC (Updated as on March Lending – Small Finance Banks – No.08/04.09.01/2019-20 12, 2020) Targets and Classification 21. FIDD.CO.Plan.BC.18 May 06, 2019 Priority Sector Lending – Targets /04.09.01/2018-19 and Classification 22. Letter to Indian Banks’ October 4, 2018 Exemption of Special GOI Association No. Securities issued to Public Sector FIDD.CO.Plan.772/04.09.00 Banks from Adjusted Net Bank 1/2018-19 Credit (ANBC) 23. FIDD.CO.Plan.BC. September 21, 2018 Co-origination of loans by Banks 08/04.09.01/2018-19 and NBFCs for lending to priority sector 24. FIDD.CO.Plan.BC.07/04.09. July 12, 2018 5Priority Sector Lending – Targets 2 01/2018-19 0 and Classification: Lending to 2 non-corporate farmers – System , 1 0 wide average of last three years 25. FIDD.CO.Plan.BC.22/04.09. June 19, ri l2018 Priority Sector Lending – Targets p 01/2017-18 A and Classification 26. DCBR.BPD Mafy 10, 2018 Revised guidelines on lending to . e (PCB).Cir.No.07/09.09.002/2 . Priority Sector for Primary (Urban) w 017-18 Co-operative Banks (UCBs) n 27. FIDD.CO.Plan.BC.18/04.09. w March 1, 2018 Priority Sector Lending – Targets a 01/2017-18 r and Classification d 28. FIDD.CO.Plan.BC.16/04.0h9. September 21, 2017 Priority Sector Lending – Targets t 01/2017-18 Wi and Classification: Lending to non-corporate farmers – System wide average of last three years 29. FIDD.CO.SFB.No.9/04.09.00 July 6, 2017 Small Finance Banks – 1/2017-18 Compendium of Guidelines on Financial Inclusion and Development 30. FIDD.CO.Plan.BC.No.17/04. October 6, 2016 Priority Sector Lending – 09.001/2016-17 Revised Reporting System 31. DBR.NBD.No.26/16.13.218/ October 6, 2016 Operating Guidelines for Small 2016-17 Finance Banks 32. Master Directions DNBR September 1, 2016 Master Directions 2016-NBFC- PD.007 and (updated as on Non-SI-Non-deposit taking and SI- 008/03.10.119/2016-17 February 17, 2020) Non-Deposit and Deposit taking Company, respectively 33. FIDD.CO.Plan.BC.No.14/04. September 1, 2016 Priority Sector Lending-Targets 09.001/2016-17 and Classifications: Lending to Non-corporate Farmers – System Wide Average of last three years 34. FIDD.CO.Plan.BC.No.10/04. August 11, 2016 Priority Sector Lending Status 09.001/2016-17 for Factoring Transactions 35. FIDD.CO.Plan.BC.No.8/04.0 July 28, 2016 PSL-Targets and Classification – 9.001/2016-17 Bank loans to MFIs for on-lending- Qualifying asset – Revised loan limit 39APPENDIX 36. Master Directions July 07, 2016 Master Directions - Regional Rural FIDD.CO.Plan.2/04.09.01/20 (Updated as on June Banks - Priority Sector Lending – 16-17 18, 2019) Targets and Classification 37. FIDD.CO.Plan.BC.23/04.09. April 7, 2016 Priority Sector Lending Certificates 01/2015-16 38. DBOD Mailbox clarification March 28, 2016 Bank loans to proprietorship under Priority Sector 39. DBOD Mailbox clarification March 17, 2016 Eligibility of IBPC as Priority Sector Asset 40. FIDD.CO.Plan.BC.No.14/04. December 03, 2015 Regional Rural Banks - Priority 09.01/2015-16 Sector Lending – Targets and Classification 41. DBOD Mailbox clarification November 27, 2015 Bank loans to SHGs/ JLGs- Processing Charges 42. FIDD.CO.Plan.BC.13/04.09. November 18, 2015 Priority Sector Lending-Targets 01/2015-16 and Classification 43. DBOD Mailbox clarification September 7, 2015 Calculation of shortfall/ excess 44. DBOD Mailbox clarification August 14, 2015 Social Infrastructure and Bank loans to MFIs for on-lending - Social Infrastructure 45. FIDD.CO.Plan.BC.08/04.09. July 16, 2015 Priority Sector Lending –Targets 01/2015-16 and Classification 46. DBOD Mailbox clarification June 26, 2015 Outstanding deposits with MUDRA 5 2 Ltd. On account of priority sector 0 2 shortfall 47. DBOD Mailbox clarification June 12, 20115, Loans to Minority Communities 0 48. DBOD Mailbox clarification June 11, 2015 Loans to Custom Service Units 49. FIDD.CO.Plan.BC.54/04.09. April 23,r i 2l 015 Priority Sector Lending-Targets p 01/2014-15 A and Classification f 50. DCBR.BPD.(PCB) Cir.No. Maer.ch 19, 2015 Priority Sector Lending – Persons 7/14.01.062/2014-15 w. with Disabilities (PwD) – Inclusion n under Weaker Sections w 51. DCBR.BPD.(PCB) Cir.No. February 18, 2015 Credit Facilities to Minority a 5/14.01.062/2014-15 dr Community – Inclusion of Jain h t Community under Section 2© of Wi National Commission of Minorities (NCM) Act, 1982 52. UBD.BPD.(PCB).Cir.No.72/1 June 11, 2014 Section 42(1) of the Reserve Bank 3.01.000//2013-14 of India Act, 1934 and Section 18 & 24 of the Banking Regulation Act, 1949 (AACS)- FCNR (B)/NRE deposits – Exemption from Maintenance of CRR/SLR and Exclusion from ABC for Priority Sector Lending 53. UBD.CO.BPD.(PCB).Cir.No. September 10, 2013 Finance for Housing Schemes - 13/09.22.010/2013-14 Primary (Urban) Co-operative Banks - Loans for Repairs / Additions / Alterations - Enhancement of Limits 54. UBD.BPD.(PCB).CIR.No.5/1 August 27, 2013 Section 42(1) of the Reserve Bank 3.01.000/2013-14 of India Act, 1934 and Section 18 and 24 of the Banking Regulation Act, 1949 (AACS) - FCNR (B) / NRE Deposits - Exemption from Maintenance of CRR / SLR and Exclusion from ABC for Priority Sector Lending 55. UBD.BPD.(PCB).CIR.No.33/ May 18, 2012 Priority Sector Lending -Indirect 09.09.001/2011-12 Finance to Housing Sector. 40APPENDIX 56. UBD.BPD.(PCB)CIR.No.50/ June 2, 2011 Financing of Self Help Groups 13.05.000(B)/2010-11 (SHGs) and Joint Liability Groups (JLGs) by Primary (Urban) Co- operative Banks (UCBs) 57. UBD.CO.BPD.No.70/09.09.0 June 15, 2010 Advances to MSEs engaged in 01/2009-10 exports and export credit to agriculture / allied activities 58. UBD.BPD(PCB).Cir.No.50/0 March 25, 2010 Categorisation of activities under 9.09.01/2009-10 Services 59. UBD.PCB.Cir.No.26/09.09.0 November 30, 2007 Priority Sector lending-Revision of 01/07-08 target - UCBs 60. UBD.PCB.Cir.No.11/09.09.0 August 30, 2007 Revised Guidelines on Lending to 1/07-08 Priority Sector for UCBs 61. UBD.PCB.Cir.No.11(126A)/0 August 30, 2007 Priority Sector Advances - List of 9.09.001/2007-08 minority Concentrated Districts 5 2 0 2 , 1 0 ril p A f . e . w n w a r d h t Wi 41

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