RBI/2017-18/135
FIDD.CO.Plan.BC.18/04.09.01/2017-18
March 01, 2018
The
Chairman/ Managing Director & CEOs
All Scheduled Commercial Banks
Dear
Sir/ Madam,
Priority Sector Lending – Targets and
Classification
Please refer to the revised priority
sector guidelines issued to banks vide FIDD.CO.Plan.BC.54/04.09.01/2014-15
circular dated April 23, 2015. It was stipulated therein under Para (II)
(i) that the sub-targets for lending to small and marginal farmers and
micro enterprises shall be made applicable for foreign banks with 20
branches and above, post 2018 after a review in 2017.
2.
Accordingly, after undertaking a review of the priority sector lending
profile of the above banks and to create a level-playing field within
banks, it has been decided that the sub-target of 8 percent of Adjusted Net
Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet
Exposure (CEOBE), whichever is higher, shall become applicable for the
foreign banks with 20 branches and above, for lending to the small and
marginal farmers from FY 2018-19. Further, the sub-target of 7.50 percent
of ANBC or CEOBE, whichever is higher, for bank lending to the Micro
Enterprises shall also become applicable for the foreign banks with 20
branches and above from FY 2018-19.
3.
Additionally, in the light of feedback received from various stakeholders
and in line with the increasing importance of services sector in our
economy, it has been decided to remove the currently applicable loan limits
of ? 5 crore and ? 10 crore per borrower to Micro/ Small and Medium
Enterprises (Services) respectively, for classification under priority
sector. Accordingly, all bank loans to MSMEs, engaged in providing or
rendering of services as defined in terms of investment in equipment under
MSMED Act, 2006, shall qualify under priority sector without any credit
cap.
Yours
faithfully,
(Gautam
Prasad Borah)
Chief General Manager-in Charge
|