The Reserve Bank of India (RBI) on July 27, 2023, issued a circular regarding the update to the Master Directions – Priority Sector Lending Targets and Classification
The following has been stated namely: -
• It states that the Reserve Bank of India's PSL guidelines for Commercial Banks were last reviewed in April 2015, and for UCBs in May 2018. With the goal of harmonizing various instructions issued to Commercial Banks, SFBs, RRBs, UCBs, and LABs; aligning these guidelines with emerging national priorities; and bringing a sharper focus on inclusive development, it was decided to comprehensively review the PSL guidelines.
• The revised guidelines also aim to encourage and support environment-friendly lending policies to help achieve Sustainable Development Goals (SDGs).
• These Master Directions encompass the revised guidelines on PSL for all Commercial banks, RRBs, SFBs, UCBs, and LABs and, accordingly, supersede the earlier Master Directions on PSL issued separately for Scheduled Commercial Banks, RRBs, SFBs, and guidelines issued for UCBs, respectively.
• The list of circulars consolidated in these Master Directions is indicated in the Appendix.
• The updated Master Directions – Priority Sector Lending Targets and Classification has been attached to the document.
[Circular No.RBI/FIDD/2020-21/72 Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21]
