Priority Sector Lending

MASTER CIRCULAR- PRIORITY SECTOR LENDING-TARGETS AND

CLASIFICATION

I. Categories under priority sector

(i) Agriculture

(ii) Micro, Small and Medium Enterprises

(iii) Export Credit

(iv) Education

(v) Housing

(vi) Social Infrastructure

(vii) Renewable Energy

(viii) Others

The details of eligible activities under the above categories are specified in paragraph III.

II. Targets /Sub-targets for Priority sector

(i) The targets and sub-targets set under priority sector lending for all scheduled commercial banks

operating in India are furnished below:

Categories

Total

Sector

Domestic scheduled commercial banks

and Foreign banks with 20 branches

and above

Foreign banks with less than

20 branches

Priority 40 percent of Adjusted Net Bank Credit

[ANBC defined in sub paragraph (iii)] or

Credit Equivalent Amount of Off-Balance

Sheet Exposure, whichever is higher.

40 percent of Adjusted Net

Bank Credit [ANBC defined in

sub paragraph (iii)] or Credit

Equivalent Amount of OffBalance

Sheet

Exposure,

whichever is higher; to be

achieved in a phased manner

by 2020 as indicated in sub

paragraph (ii) below.

Foreign banks with 20 branches and

above have to achieve the Total Priority

Sector Target within a maximum period

of five years starting from April 1, 2013

and ending on March 31, 2018 as per the

action plans submitted by them and

approved by RBI.

Agriculture

18 percent of ANBC or Credit Equivalent

Amount of Off-Balance Sheet Exposure,

whichever is higher.

Within the 18 percent target for

agriculture, a target of 8 percent of ANBC

or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is

higher is prescribed for Small and

Marginal Farmers, to be achieved in a

phased manner i.e., 7 per cent by March

2016 and 8 per cent by March 2017.

Not applicable

Foreign banks with 20 branches and

above have to achieve the Agriculture

Target within a maximum period of five

years starting from April 1, 2013 and...