Updated RBI Priority Sector Lending (PSL) Directions, 2025
The RBI Priority Sector Lending (PSL) Master Directions, 2025, updated as on January 19, 2026, consolidate and supersede the earlier 2020 guidelines. These Directions apply to Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Local Area Banks (LABs), and Urban Co-operative Banks (UCBs), excluding Salary Earners’ Banks. The revised framework aims to strengthen…
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Bank finance under PMEGP scheme
(This article clarifies on who is eligible ( the age, limit, qualification) including quantum of subsidy, bank loan and money to be bought up by the entrepreneur to start up a business for bank finance under PMEGP scheme.) Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh…
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CLCSS subsidy scheme for micro and small enterprises
The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises. If you are a MSE (Micro & Small Enterprise) manufacturer and if you want to modernize your equipment/plant/machineries, you may get capital subsidy of up to Rs.15 lakh…
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Managing key elements of Fraud Risk in Banks
This article examines the key elements of RBI’s Master Directions on Fraud Risk Management, focusing on RFAs, EWS, staff accountability, and governance requirements. Red Flagged Accounts (RFA) A Red Flagged Account is identified when one or more Early Warning Signals indicate the possibility of fraudulent activity in a loan or credit facility. RBI mandates banks…
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Loan Documentation – concise, ready-to-use Bank Staff Checklist
(To be verified before disbursement and safe custody) — A. Sanction & Acceptance ☐ Sanction terms communicated to borrower in writing ☐ Written acceptance obtained from borrower ☐ Written acceptance obtained from guarantor (where applicable) ☐ Sanction letter and acceptance kept on record — B. Stamp Duty & Stamping ☐ Document stamped before or at…
Perfecting Loan Documentation: A Practical Compliance Checklist for Bankers
This article is to equip bank staff with a practical, compliance-oriented understanding of loan documentation, ensuring creation of legally valid, enforceable, and error-free loan documents. 1. What is Loan Documentation? Loan documentation refers to the systematic process of obtaining, executing, and preserving documents strictly in accordance with sanction terms, applicable laws, and regulatory requirements. Proper…
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