Today (September 4, 2020) announced that PSL guidelines have been comprehensively reviewed to align it with emerging national priorities and bring a sharper focus on inclusive development, after having wide-ranging discussions with all stakeholders. “Revised PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and weaker sections; boost credit to renewable energy, and health infrastructure,” it said.
Salient feature of new guidelines
- Bank finance start-ups up to Rs.50 Crore included as eligible for finance under priority sector
- Loans to farmers for installation of solar power plants for solarisation of grid-connected agriculture pumps included as eligible for finance under priority sector
- Loans for setting up Compressed Bio-Gas (CBG) plants included as eligible for finance under priority sector
- Higher weightage has been assigned to incremental priority sector credit in ‘identified districts’ where priority sector credit flow is comparatively low. This is with a view to addressing regional disparities in the flow of priority sector credit.
- The targets prescribed for “small and marginal farmers” and “weaker sections” are being increased in a phased manner.
- A higher credit limit has been specified for Farmers Producers Organisations (FPOs)/Farmers Producers Companies (FPCs) undertaking farming with assured marketing of their produce at a pre-determined price.
- Loan limits for renewable energy have been doubled as eligible for finance under the priority sector.
- The credit limit for improvement of health infrastructure (including those under ‘Ayushman Bharat’) has been doubled.