The Reserve Bank has changed its guidelines for priority sector lending. Now solar plants and compressed biogas plants including startups have been brought under the ambit of loans to primary sector.
The Reserve Bank on Friday said that the Priority Sector Lending (PSL) guidelines have been reviewed extensively. It has been modified to suit emerging national priorities. The central bank said that after discussions with all the stakeholders, it will now focus more on inclusive development. According to a release issued by the Reserve Bank, “The revised PSL guidelines will improve access to credit to the deprived areas. With this, more loans will be made available to small and marginal farmers and weaker sections of society. At the same time, it will also increase the debt to renewable energy, health infrastructure. ”
The Reserve Bank said that the target set for small and marginal farmers and weaker sections will be increased in a phased manner. The central bank said that the limit of higher loans has been fixed for Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs). Under the new rules, the limit of loans for renewable energy, health infrastructure (including projects under Ayushman Bharat) has been doubled.
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