Priority Sector Lending Targets for FY 2018-19 for Foreign Banks with 20 or more Branches.

Updates

RBI announced Priority Sector Lending Targets for FY 2018-19 for Foreign Banks with 20 or more Branches in notification dated 1st march 2018. As per RBI notification, Lending target are:-

  1. Sub-target of 8% of ANBC (Adjusted Net Bank Credit) or CEOBE (Credit equivalent Amount of Off-Balance Sheet Exposure), whichever is higher to small and marginal farmer.
  2. Sub-target of 7.5% of ANBC (Adjusted Net Bank Credit) or CEOBE (Credit equivalent Amount of Off-Balance Sheet Exposure), whichever is higher to micro Enterprises.

Note:- For classification of loan under priority sector currently there is loan limit of Rs. 5 crore for micro enterprises and Rs. 10 crore for small & medium enterprises. RBI decided to remove this limit hence all loans to MSMEs (under MSMED Act 2006) shall qualify for priority sector without any limit.