Priority sector lending: GK, Current Affairs, Questions, Trivia and News

Government announces steps to boost Housing and revive Exports

As part of efforts to get the slowing down economy back to the track of growth, the Ministry of Finance has announced steps to help the nearly stalled real estate sector and increase India’s exports. Housing Sector Setting up of a Rs 20,000 crore fund (Rs 10,000 crore from Government and roughly same amount from ..

India Post Payments Bank to be converted into Small Finance Bank

Indian Posts has made a decision to convert India Post Payments Bank into Small Finance Bank. This will enable the Bank to offer small loans to customers. Payment Banks Payments banks were introduced by the Reserve Bank of India (RBI) to meet the government’s financial inclusion target. A payment Bank will be set up as ..

On Tap Licence for Small Finance Banks

The Reserve Bank of India (RBI) is considering to issue “on tap” licensing for small finance banks. The on-tap licensing will allow entities to approach the RBI for obtaining licences for small finance banks on meeting laid-down criteria. RBI wants to cash in the potential of small finance banks in promoting banking facilities for small ..

RBI raises limit for collateral-free agriculture loans from Rs 1 Lakh Rs 1.6 lakh

The Reserve Bank of India (RBI) has recently raised the limit for collateral-free agriculture loans to Rs 1.6 lakh from Rs. 1 lakh to enhance coverage of small and marginal farmers in the formal credit system. Currently, the banks are mandated to extend collateral-free agricultural loans up to Rs. 1 lakh. This limit was fixed ..

Major Banking Reforms of 21st Century

India is one among the top 10 economies in the world. Banking sector in India is robust and forms the most dominant segment of the financial sector. The banking industry acts as a pivot in the economic development of the country. The face of the banking industry has been witnessing changes over the years. The ..

Small Finance Banks

On 27 November 2014, RBI had released the guidelines on Small Finance Banks along with the Payment Banks. The objective of small finance banks is to further financial inclusion by providing: Basic banking facilities to the unbanked and thereby boosting saving habits. Supply of credit to small business units, small and marginal farmers, micro and ..

Rural banks told to double home loan limit for priority sector

The RBI has demanded all RRBs (Regional Rural Banks) to double the limit for home loans to Rs 10 lakh from Rs 5 lakh for lending for the Priority Sector. The increment in the limit will be applicable for the bank loans extended to non-governmental agencies, sanctioned by National Housing Bank for their refinance, on-lending ..

RBI doubles home loan limit to Rs. 10 lakh to promote housing for low income groups

The RBI has doubled the limit for home loans from Rs 5,00,000 to Rs 10,00,000 for consideration under Priority Sector Lending. This move was taken by RBI in a bid to encourage housing for low income groups in key cities. The RBI has been decided to increase thiss limit for the bank loans extended to ..