RBI revises Priority Sector Lending Guidelines effective from 1st April 2025 | Current Affairs | Vision IAS
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RBI revises Priority Sector Lending Guidelines effective from 1st April 2025

Posted 25 Mar 2025

2 min read

The guidelines have been issued  in exercise of powers conferred by Sections 21 and 35A read with Section 56 of Banking Regulation Act, 1949.

Revised Guidelines 

  • Enhancement of several loan limits:-
    • Education : upto ₹25 lakh for individuals  (including vocational courses)
    • Social Infrastructure: upto ₹8 crore per borrower for setting up schools, drinking water facilities etc
    • Other: Housing Loan Limits, Agriculture Loans etc
  • Focused on ‘Renewable Energy’: 
    • Upto ₹35 crore for renewable energy-based power generators and for renewable energy based public utilities such as street lighting systems, remote village electrification.
      • The limit is ₹10 lakh for individual households.
  • Revision of PSL target for Primary (Urban) Co-operative Bank (UCBs) 
    • Total Priority Sector: 60%
    • Micro Enterprises: 7.5%
    • Advances to Weaker Sections: 12%
  • Expansion of the category of ‘Weaker Sections’:-
    • It now includes Transgenders along with earlier categories of:-
      • Small and Marginal Farmers, Distressed farmers indebted to non-institutional lenders, Artisans, Individual members of SHGs or Joint Liability Groups, 
      • Scheduled Castes & Scheduled Tribes, Persons with disabilities, Minority communities notified by Government of India
      • Individual women beneficiaries up to ₹2 lakh (This  limit is not applicable to UCBs)

Targets/Sub-targets for Priority sector

  • Tags :
  • Priority Sector Lending
  • PSL
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