Official Gazette Notification Text
Official Transcriptभारतीय �रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2024-25/44 FIDD.CO.PSD.BC.No.7/04.09.01/2024-25 June 21, 2024 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, Priority Sector Lending – Amendments...
भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2024-25/44 FIDD.CO.PSD.BC.No.7/04.09.01/2024-25 June 21, 2024 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, Priority Sector Lending – Amendments to the Master Directions Please refer to Master Directions (MD) on Priority Sector Lending (PSL) dated September 04, 2020 as updated from time to time. The following paras of the Directions stand amended in view of factors detailed thereunder.
2. Para 7 - Adjustments for weights in PSL Achievement:
The MD specifies that the lists of districts with comparatively high and low PSL credit detailed in Annex IA and IB of the MD are valid until FY 2023-24 subject to review thereafter. Based on a review, the lists of districts have been updated. These lists will remain valid until FY 2026-27 and will be reviewed thereafter. Accordingly, from FY 2024-25 onwards, a higher weight (125%) would be assigned to the incremental priority sector credit in the identified districts where the credit flow is comparatively lower (per capita PSL less than ₹9,000), and a lower weight (90%) would 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). Therefore, para 7 of the MD on PSL has been updated as mentioned above.
3. Para 9 - Micro, Small & Medium Enterprises:
The definition of MSMEs has been referenced to the Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector, for clarity. िव�ीय समावेशन और िवकास िवभाग,क��ीय कायार्लय, 10व� मंिज़ल,क��ीय कायालर् य िब�ल्डगं ,शहीद भगत �सहं माग,र् मुंबई 400 001 टेलीफोन:Tel No.: +912222601000/ फैक्स: +91-22-22621011/22610948/22610943 ईमेल: cgmincfidd@rbi.org.in Financial Inclusion and Development Department, Central Office,10th Flr, Central Office Building, Shahid Bhagat Singh Marg,Mumbai 400001 �हदं ी आसान ह,ै इसका �योग बढ़ाइए चते ावनी : �रज़व र्बक� �ारा -डाक, मले एसएमएस या फोन कॉल के ज�रए �कसी क� भी व्य ि�गत जानकारी जसै ेबक� के खात ेका ब्य ौरा, पासवड र्आ�द नह� मागं ी जाती ह।ै यह धन रखन ेया दने े का �स् ताव भी नह� करता ह।ै ऐस े�स् ताव� 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.4. Para 27 - Monitoring of Priority Sector Lending targets:
The MD specifies that UCBs shall furnish data on priority sector advances in the reporting formats ‘Statement I’ and ‘Statement II (Part A to D)’ at quarterly and annual intervals, to the Regional Offices of DoS, RBI. This provision has been repealed in terms of Master Direction - Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 (MD on FSR) dated February 27, 2024. The applicable return for reporting PSL data by UCBs has been prescribed at Sl. No. 61 of Annex III of the MD on FSR. Accordingly, para 27 of MD as applicable to UCBs has been updated.
5. The relevant amendments made in the MD on PSL are detailed in the Annex.
6. The Master Directions and FAQs on Priority Sector Lending on the Bank’s website have been updated accordingly.
Yours faithfully, (Nisha Nambiar) Chief General Manager-in-Charge
Encl: As aboveAnnex Para no. of MD Extracts of existing paras Extracts of revised paras on PSL 7 To address regional disparities in the To address regional disparities in the flow of priority sector credit at the flow of priority sector credit at the district level, it has been decided to district level, it was decided to rank rank districts on the basis of per districts on the basis of per capita capita credit flow to priority sector credit flow to priority sector and build and build an incentive framework for an incentive framework for districts districts with comparatively lower with comparatively lower flow of credit flow of credit and a dis-incentive and a dis-incentive framework for framework for districts with districts with comparatively higher comparatively higher flow of priority flow of priority sector credit. With sector credit. Accordingly, from FY effect from FY 2024-25, a higher 2021-22 onwards, a higher weight weight (125%) shall be assigned to (125%) would be assigned to the the incremental priority sector credit in incremental priority sector credit in the identified districts where the credit the identified districts where the flow is comparatively lower (per capita credit flow is comparatively lower PSL less than ₹9,000), and a lower (per capita PSL less than ₹6000), weight (90%) will be assigned for and a lower weight (90%) would be incremental priority sector credit in the assigned for incremental priority identified districts where the credit sector credit in the identified districts flow is comparatively higher (per where the credit flow is capita PSL greater than ₹42,000). The comparatively higher (per capita list of both categories of districts is PSL greater than ₹25,000). The list given in Annexes IA and IB and will be of both categories of districts is given valid up to FY 2026-27. The districts in Annex IA & IB. This list will be valid other than those mentioned in for a period up to FY 2023-24 and Annexes IA and IB will continue to will be reviewed thereafter. The have existing weightage of 100%.
districts other than those mentioned in Annex IA and IB will continue to have existing weightage of 100%.
9 The definition of MSMEs will be as The definition of MSMEs shall be as per Government of India (GoI), given in the Master Direction – Gazette Notification S.O. 2119 (E) Lending to Micro, Small & Medium dated June 26, 2020 read with Enterprises (MSME) Sector
circular RBI/2020-2021/10 FIDD.MSME&NFS.12/06.02.31/2017- FIDD.MSME & 18 dated July 24, 2017 as updated NFS.BC.No.3/06.02.31/2020-21 from time to time. All bank loans to read with FIDD.MSME & NFS. BC. MSMEs shall qualify for classification No.4/06.02.31/2020-21 dated July 2, under priority sector lending.
2020, August 21, 2020 respectively on ‘Credit flow to Micro, Small and Medium Enterprises Sector’ and updated from time to time. Further, such MSMEs should be engaged inthe manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services.
All bank loans to MSMEs conforming to the above guidelines qualify for classification under priority sector lending.
27 In respect of UCBs, the data on UCBs shall be guided by Master priority sector advances in the Direction – Reserve Bank of India reporting formats ‘Statement I’ and (Filing of Supervisory Returns) ‘Statement II (Part A to D)’ shall be Directions – 2024 dated February 27, furnished at quarterly and annual 2024, as updated from time to time, as intervals, to the Regional Office of regards submission of data on priority DoS, RBI. sector advances.