RBI revises priority sector lending norms

Date:


MUMBAI: RBI has revised its priority sector tips to encourage banks to supply small loans in economically deprived districts with low common mortgage sizes. The new norms discourage lending in districts with excessive common mortgage sizes.
Starting from FY25, extra weight (125%) can be given to contemporary priority sector loans in districts the place the mortgage availability is low (lower than Rs 9,000 per particular person).In districts with excessive mortgage availability (greater than Rs 42,000 per particular person), the loans may have a weight of 90%. With the exception of outlier districts with low credit score availability and people with excessive mortgage sizes, all different districts will proceed to have the present significance stage of 100%.
“RBI has decided to rank districts based on per capita credit flow to the priority sector, and to establish an incentive framework for districts with lower credit flow and a disincentive framework for districts with higher priority sector credit flow,” RBI mentioned.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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