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Revision of Priority Sector Lending (PSL) Guidelines by RBI

  In an attempt to bring about a sharper focus on inclusive development and in order to align the PSL with emerging national priorities, RBI has undertaken a revision of PSL guidelines that would enable: (1)  Better credit penetration to credit deficient areas through:        (a)   Announcement of fresh category for eligibility under bank funding:-               (i) Start-ups with a lending limit of upto Rs. 50 crore              (ii) Loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps                 (iii) Loans for setting up Compressed Bio Gas (CBG) plants      (b)  higher weightage (125%) has been assigned to incremental priority sector credit in 184 identified districts where priority sector credit flow has been comparatively low (per capita PSL less than Rs. 6,000). Lower weight (90%) would be assigned for incremental priority sector credit in the 205 identified districts where the credit flow is comparatively higher (per c