Direct Benefit Transfer (DBT) Scheme – Implementation
The use of Aadhaar to facilitate delivery of social welfare benefits by direct credit to the bank accounts of beneficiaries .
In this connection, banks are advised to ensure that opening of bank accounts and seeding of Aadhaar numbers with existing or new accounts of eligible beneficiaries opened for the purpose of Direct Benefit Transfer (DBT) under social welfare schemes.
Priority Sector Lending – Lending by banks to NBFCs for On-Lending
To boost credit to the needy segment of borrowers, it has been decided that 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:
- Agriculture: On-lending by NBFCs for ‘Term lending’ component under Agriculture will be allowed up to 10 lakh per borrower.
- Micro & Small enterprises: On-lending by NBFC will be allowed up to 20 lakh per borrower.
- Housing: Enhancement of the existing limits for on-lending by HFCs Priority Sector lending, from 10 lakh per borrower to 20 lakh per borrower.
The above on-lending model, banks can classify only the fresh loans sanctioned by NBFCs out of bank borrowings, on or after the date of issue of this circular. However, loans given by HFCs under the existing on-lending guidelines will continue to be classified under priority sector by banks.
Bank credit to NBFCs for On-Lending will be allowed upto a limit of five percent of individual bank’s total priority sector lending on an ongoing basis. Further, the above instructions will be valid for the current financial year upto March 31, 2020 and will be reviewed thereafter. However, loans disbursed under the on-lending model will continue to be classified under Priority Sector till the date of repayment/maturity.
The guidelines shall come into effect from the date of the issuance of this Circular.
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