The Reserve Bank of India (RBI) on June 21, 2024, issued amendments to the Master Directions (MD) on Priority Sector Lending (PSL) dated September 04, 2020.
The following paras of the Directions stand amended:
• Para 7 - Adjustments for weights in PSL Achievement:
The MD specifies that the lists of districts with comparatively high and low PSL credit detailed in Annex IA and IB of the MD are valid until FY 2023-24 subject to review thereafter. Based on a review, the lists of districts have been updated. These lists will remain valid until FY 2026-27 and will be reviewed thereafter. Accordingly, from FY 2024-25 onwards, a higher weight (125%) would be assigned to the incremental priority sector credit in the identified districts where the credit flow is comparatively lower (per capita PSL less than ₹9,000), and a lower weight (90%) would be assigned for incremental priority sector credit in the identified districts where the credit flow is comparatively higher (per capita PSL greater than ₹42,000). Therefore, para 7 of the MD on PSL has been updated as mentioned above.
• Para 9 - Micro, Small & Medium Enterprises:
The definition of MSMEs has been referenced to the Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector, for clarity.
• Para 27 - Monitoring of Priority Sector Lending targets:
The MD specifies that UCBs shall furnish data on priority sector advances in the reporting formats ‘Statement I’ and ‘Statement II (Part A to D)’ at quarterly and annual intervals, to the Regional Offices of DoS, RBI. This provision has been repealed in terms of Master Direction - Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 (MD on FSR) dated February 27, 2024. The applicable return for reporting PSL data by UCBs has been prescribed at Sl. No. 61 of Annex III of the MD on FSR. Accordingly, para 27 of MD as applicable to UCBs has been updated.
[Notification No. RBI/2024-25/44 FIDD.CO.PSD.BC.No.7/04.09.01/2024-25]
