RBI has issued notification regarding Review of Priority Sector Lending norms – Small Finance Banks.
It has been decided that financial year 2025-26 onwards, the additional component (35 per cent) of priority sector lending (PSL) shall be reduced to 20 per cent, thereby making the overall PSL target as 60 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher. The small finance bank (SFB) shall continue to allocate 40 per cent of its ANBC or CEOBE, whichever is higher, to different sub-sectors under PSL as per the extant PSL prescriptions, while the balance 20 per cent shall be allocated to any one or more sub-sectors under the PSL where the bank has competitive advantage.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12875&Mode=0
