75% of outstanding advances
The Reserve Bank of India (RBI) has revised Priority Sector Lending (PSL) norms for Regional Rural Banks (RRBs). As per the new norms, the PSL target has increased to 75% of total outstanding advances from the existing 60%. It will come into effect from January 1, 2016. However, the RBI has liberalised the amount they can lend to segments such as agriculture and also included medium enterprises, social infrastructure and renewable energy under PSL category. Loans to individual farmers has increased to Rs. 50 lakh from the present Rs. 10 lakh against pledge/ hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months. In case of housing loans, loans to individuals up to Rs. 20 lakh only are considered as PSL as against the earlier limit of Rs. 25 lakh.