Current Context: The Reserve Bank of India has reviewed and released Revised Priority Sector Lending Guidelines.
- The PSL guidelines are revised to increase the funding for COVID-19 economically impacted sectors.
- These revised PSL guidelines will offer better credit penetration and increase lending to small and marginal farmers and economically weaker sections of society.
- The new PSL guidelines include some fresh categories that can opt for finance under the PSL sector.
- This includes loans to be offered to the farmers for installing solar power plants, loans for the establishment of compressed biogas (CBG).
- Along with this, RBI has allotted higher weightage to increase PSL in ‘identified district’ where priority sector credit flow is relatively low.
- The credit limit for FPOs (Farmers Producers Organisations)/ FPCs (Farmer Producer Companies is increased. The loan limit to be offered on renewable energy has also be increased. The credit limit on health benefits like Ayushman Bharat is also increased by RBI.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
