**Policy Summary: Priority Sector Lending - Classification of Exports**
**Issuing Authority:** Reserve Bank of India (RBI)
**Date:** September 20, 2019
**Subject:** Changes to Priority Sector Lending (PSL) guidelines concerning the classification of export credit.
**Key Changes:**
* **Increased Sanctioned Limit:** The sanctioned limit for classifying export credit under PSL has been increased from ₹250 million to ₹400 million per borrower.
* **Turnover Criterion Removed:** The previous criterion that limited the benefit to units with a turnover of up to ₹1 billion has been removed.
* **Incremental Export Credit:** Domestic scheduled commercial banks can continue to classify incremental export credit (over the corresponding date of the preceding year) of up to 2% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (whichever is higher) under PSL, subject to the revised sanctioned limit of ₹400 million per borrower.
**Applicability:**
* All Scheduled Commercial Banks including Small Finance Banks (SFBs), excluding Regional Rural Banks.
* Existing instructions for foreign banks remain unchanged.
**Contact:**
Gautam Prasad Borah
Chief General Manager-in-Charge
Financial Inclusion and Development Department, Central Office, RBI
10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.Box No.10014, Mumbai – 400 001
Tel No.: 91-22-22601000
Fax No.: 91-22-22621011 / 22610948 / 22610943
Email: cgmincfidd@rbi.org.in
**Reference:** FIDD.CO.Plan.BC.1204/09.01/2019-20
**Website:** www.rbi.org.in
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Priority Sector Lending: A scheme by Reserve Bank of India that mandates banks to allocate a certain percentage of their lending to specific sectors of the economy, such as agriculture, small businesses, and exports.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
SFBs: Small Finance Banks, a type of banking institution in India.
Regional Rural Banks: Regional Rural Banks, financial institutions in India operating at regional level
Master Direction on Priority Sector Lendingtargets and Classification: A regulatory document issued by the Reserve Bank of India outlining the guidelines and targets for Priority Sector Lending.
ANBC: Adjusted Net Bank Credit
Mumbai, Maharashtra: The city in India where the Central Office of the Financial Inclusion and Development Department of RBI is located.
भारतीय �रज़व र् ब�क
---------------------------------------------------- RESERVEBANKOFINDIA ---------------------------------------------------
www.rbi.org.in
RBI/2019-20/66
FIDD.CO.Plan.BC.12/04.09.01/2019-20 September 20, 2019
The Chairman/Managing Director & CEOs
All Scheduled Commercial Banks including SFBs
(Excluding Regional Rural Banks)
Madam/Dear Sir,
Priority Sector Lending (PSL) – Classification of Exports under priority Sector
In order to boost credit to export sector, it has been decided to effect following changes
in para 8 of the “Master Direction on Priority Sector Lending-targets and Classification”
dated July 7, 2016 (updated as on December 4, 2018) pertaining to export credit.
(i) Enhance the sanctioned limit, for classification of export credit under PSL,
from ₹ 250 million per borrower to ₹ 400 million per borrower.
(ii) Remove the existing criteria of ‘units having turnover of up to ₹ 1 billion’
2. The existing guidelines for domestic scheduled commercial banks to classify
‘Incremental export credit over corresponding date of the preceding year, upto 2 per
cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever
is higher’ under PSL will continue to be applicable subject to the criteria mentioned at
(i) above.
3. There is no change in the present instructions in respect of foreign banks.
Yours faithfully,
(Gautam Prasad Borah)
Chief General Manager-in-Charge
िव�ीय समावेशनऔर िवकास िवभाग,क��ीय कायार्लय, 10व� मंिज़ल,क��ीय कायार्लय िब�ल्डगं ,शहीद भगत �संह माग,र्पो.बा.सं.10014,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 Floor, Central Office Building, Shahid Bhagat Singh Marg, P.Box No.10014, Mumbai 400 001
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