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Startups get priority sector tag

Startups get priority sector tag
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Startups get priority sector tag

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The Reserve Bank of India (RBI) on Thursday decided to broaden the scope of Priority Sector Lending (PSL) by including startups and enhancing borrowing limits for renewable energy sectors.

Mumbai: The Reserve Bank of India (RBI) on Thursday decided to broaden the scope of Priority Sector Lending (PSL) by including startups and enhancing borrowing limits for renewable energy sectors. Broadening the scope of PSL, it has been decided to include "startups; increasing the limits for renewable energy, including solar power and compressed bio gas plants; and, increasing the targets for lending to ''Small and Marginal Farmers'' and ''Weaker Sections'', the central bank said.

The central bank would also increase the targets for lending to 'small and marginal farmers' and 'weaker sections' under the PSL.

The eligible entities get access to credit on easier terms from banks under the PSL. Banks are required to assign 40 per cent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher to priority sector, including agriculture and micro-enterprises, it said.

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