The Reserve Bank of India (RBI) on June 08, 2023, issued a notification regarding the Extension of time regarding the Priority Sector Lending (PSL) targets/sub-targets and contribution against shortfall in achievement of PSL targets – Primary (Urban) Co-operative Banks (UCBs).
The following has been stated namely: -
• In order to address implementational challenges faced by the UCBs and to make the transition non-disruptive, it has been decided to extend the glide path for these PSL targets by an additional period of two years. The table with the timelines has been stated.
• In view of the implementation challenges observed, it has been decided that:
1. UCBs would not be required to contribute to RIDF or other eligible funds for the shortfall in PSL target/sub-targets during Financial Year (FY) 2020-21 and FY 2021-22.
2. UCBs shall contribute to RIDF and other eligible funds against their shortfall in PSL target/sub-targets vis-à-vis the prescribed targets with effect from March 31, 2023.
3. Also, in case a contribution has been made by any UCB towards the above PSL shortfall during FY 2020-21 and/or FY 2021-22, that contribution can be used to offset any shortfall that may have occurred during FY 2022-23. Excess deposits, if any, after offsetting the PSL shortfall during FY 2022-23 will be refunded.
[Notification No. RBI/2023-24/42]
