RBI releases draft for consolidation of Priority Sector Lending instructions

The Reserve Bank of India has reviewed the existing guidelines related to Priority Sector Lending (PSL). As part of efforts to consolidate various instructions issued from time to time, the RBI has proposed to release RE-wise guidelines on this subject.

According to the RBI, the draft guidelines for this have been placed on the website, which include the 'Targets and Classification' guidelines 2026 for commercial banks, small finance banks, local area banks, regional rural banks, and urban co-operative banks.

Following the release of these new guidelines, instructions that have not been included in this consolidated draft will be cancelled. Information regarding this will be provided separately. Comments and feedback on this proposed draft can be submitted by November.

The Reserve Bank of India is the central bank of India, established on April 1, 1935. Despite being owned by the Government of India, it functions as an autonomous regulatory body for the Indian banking and financial system. It is responsible for the issuance and regulation of the Indian Rupee, as well as the management of the country's primary payment system and foreign exchange.