The Reserve Bank of India (RBI) on October 20, 2022, updated the Master Directions – Priority Sector Lending (PSL) – Targets and Classification which is applicable to every Commercial Bank [including Regional Rural Bank (RRB), Small Finance Bank (SFB), Local Area Bank] and Primary (Urban) Co-operative Bank (UCB) other than Salary Earners’ Bank.
The following have been amended:
• In para 17 which specifies ‘Investments by banks in securitisation notes’, sub-para 17.4 has been substituted with the following:
Investment by banks in securitisation notes with loans against gold jewellery originated by NBFCs as underlying, are not eligible for priority sector status.
• In para 18 which specifies ‘Transfer of Assets through Direct Assignment /Outright purchase’, sub-para 18.5 has been substituted with the following:
Loans against gold jewellery acquired by banks from NBFCs are not eligible for priority sector status.
[Notification No. RBI/FIDD/2020-21/72 Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21]
