Page 7 - Mega Digi Page: General Awareness - Jan 2016
P. 7
www.bankersguru.org
(General Awareness)
Regional Rural Banks - Priority Sector Lending –
(New)
During the last decade, Regional Rural Banks (RRBs) have undergone significant structural
and operational changes, be it two-phased amalgamation, implementation of CBS platform or
recapitalization.
Considering the growing significance of RRBs in pursuit of financial inclusion agenda, it has
been decided to revise the priority sector guidelines for RRBs.
Some of the salient features of the guidelines are as under:-
Targets: 75 per cent of total outstanding to the sectors eligible for classification
Categories of the Priority Sector : Medium Enterprises, Social
Infrastructure and Renewable Energy will form part of the Priority Sector, in addition to
the existing categories, with a quota of 15 per cent of total outstanding.
Agriculture: 18% per cent of total outstanding should be advanced to activities
mentioned under Agriculture.
Small and Marginal Farmers: A target of 8 percent of total outstanding has been
prescribed for Small and Marginal Farmers within Agriculture.*
Micro Enterprises : A target of 7.5 per cent of total outstanding has been prescribed
for Micro Enterprises.
Weaker Sectors: A target of 15 per cent of total outstanding has been prescribed for
Weaker Sections.
Monitoring: Priority Sector Lending will be monitored on a quarterly as well as annual
basis.
Priority sectors Lending is lending to those sectors which may not get adequate and timely
credit supply in absence of this Lending.
PSL includes - Agriculture, Micro, Small and Medium Enterprises, Education, Housing, Social
Infrastructure, Renewable Energy, Others
Agriculture has been sub-divided into - Farm credit, Agriculture infrastructure, Ancillary
activities.
Penalty: IF any RRB fails to meet the target the shortfall shall be transferred by the RRB to the
RIDF and SIDBI.
Date of Release - 11-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
Regional Rural Banks - Priority Sector Lending –
(New)
During the last decade, Regional Rural Banks (RRBs) have undergone significant structural
and operational changes, be it two-phased amalgamation, implementation of CBS platform or
recapitalization.
Considering the growing significance of RRBs in pursuit of financial inclusion agenda, it has
been decided to revise the priority sector guidelines for RRBs.
Some of the salient features of the guidelines are as under:-
Targets: 75 per cent of total outstanding to the sectors eligible for classification
Categories of the Priority Sector : Medium Enterprises, Social
Infrastructure and Renewable Energy will form part of the Priority Sector, in addition to
the existing categories, with a quota of 15 per cent of total outstanding.
Agriculture: 18% per cent of total outstanding should be advanced to activities
mentioned under Agriculture.
Small and Marginal Farmers: A target of 8 percent of total outstanding has been
prescribed for Small and Marginal Farmers within Agriculture.*
Micro Enterprises : A target of 7.5 per cent of total outstanding has been prescribed
for Micro Enterprises.
Weaker Sectors: A target of 15 per cent of total outstanding has been prescribed for
Weaker Sections.
Monitoring: Priority Sector Lending will be monitored on a quarterly as well as annual
basis.
Priority sectors Lending is lending to those sectors which may not get adequate and timely
credit supply in absence of this Lending.
PSL includes - Agriculture, Micro, Small and Medium Enterprises, Education, Housing, Social
Infrastructure, Renewable Energy, Others
Agriculture has been sub-divided into - Farm credit, Agriculture infrastructure, Ancillary
activities.
Penalty: IF any RRB fails to meet the target the shortfall shall be transferred by the RRB to the
RIDF and SIDBI.
Date of Release - 11-Jan-16 SUBJECT: GA www.bankersguru.org
