RBI revises Priority Sector targets and classification
RBI vide its circular RBI/2017-18/135/FIDD.CO.Plan.BC.18/04.09.01/2017-18 dated March1, 2018 announced the following
1. 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.
2. The sub-target of 7.50 percent of ANBC or CEOBE, whichever is higher, shall become applicable for the foreign banks with 20 branches and above, for lending to the Micro Enterprises.
3. The currently applicable loan limits of ₹ 5 crores and ₹ 10 crores per borrower to Micro/ Small and Medium Enterprises (Services) respectively, for classification under priority sector, is now removed. Consequently, 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.
RBI vide its circular RBI/2017-18/135/FIDD.CO.Plan.BC.18/04.09.01/2017-18 dated March1, 2018 announced the following
1. 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.
2. The sub-target of 7.50 percent of ANBC or CEOBE, whichever is higher, shall become applicable for the foreign banks with 20 branches and above, for lending to the Micro Enterprises.
3. The currently applicable loan limits of ₹ 5 crores and ₹ 10 crores per borrower to Micro/ Small and Medium Enterprises (Services) respectively, for classification under priority sector, is now removed. Consequently, 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.
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