RBI’s Revised Guidelines on Priority Sector Lending

On 19th January 2026, the RBI notified the Reserve Bank of India (Priority Sector Lending - Targets and Classification) (Amendment) Directions, 2026, introducing changes to the Priority Sector Lending (PSL) framework.

What are the new guidelines?

  • Enhanced Compliance & External Audit: RBI requires banks to obtain certification from external auditors (or CAG-empanelled auditors for specific entities like NCDC).
  • Revised Sector Targets: The PSL target for Small Finance Banks (SFBs) has been adjusted from 75% to 60% of their Adjusted Net Bank Credit (ANBC).
  • Inclusion of NCDC: Loans provided by banks to the National Cooperative Development Corporation (NCDC) for the purpose of on-lending ....
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