Priority Sector Lending (PSL) Norms

iAbout This Scheme

Priority Sector Lending norms mandate that Indian scheduled commercial banks lend a specified proportion of Adjusted Net Bank Credit (ANBC) to priority sectors including agriculture (18%), MSME, export credit, education, housing, social infrastructure, and weaker sections. Domestic banks must achieve 40% PSL target; foreign banks have different targets.

🎁Key Benefits

• Mandated lending of 40% of ANBC to priority sectors
• Agriculture sub-target: 18% of ANBC including 10% for small/marginal farmers
• MSME lending supports micro and small enterprise growth
• Weaker sections sub-target: 12% of ANBC
• Non-achievement leads to contribution to RIDF/SBIF at lower interest
• Priority Sector Lending Certificates (PSLCs) tradable between banks

✅Eligibility Criteria

• 1
  All scheduled commercial banks (domestic and foreign)
• 2
  Regional Rural Banks and Small Finance Banks have separate targets
• 3
  Benefits end borrowers in agriculture, MSME, education, housing, and social infrastructure

📝How to Apply

❓Frequently Asked Questions