New Delhi3 minutes ago
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The Reserve Bank of India (RBI) has said that banks can not impose any access charge on small loans, especially on the priority sector bank (PSL). According to the RBI, no lonely adhoc service charge or inspection charge will be levied on priority sector loan up to Rs 50,000.
This will avoid unnecessary financial burden. The RBI has released new master directors on the priority sector (PSL). It will replace the current guideline running from 2020. The new guidelines are being implemented from 1 April 2025.
What is priority sector lending?
The priority sector lending (PSL) is a regulatory requirement fixed by RBI in India. Under this, banks have to give a part of their loan to some special sector of economy. These areas are considered important for inclusive growth, poverty reducing and development.
But banks do not reduce this due to risk or low profitability. This policy can provide affordable loans to the deprived and economically weaker sections of the society, such as farmers, small businesses and low -income families.
Banks who are unable to meet their prescribed PSL targets have to spend on the financial schemes being run by Rural Infrastructure Development (RIDF) and National Bank for Agriculture and Rural Development i.e. NABARD.
Agriculture, Education Prota Sector is …
- Agriculture: Loans to create infrastructure such as farming loans and cold storage for sectors like dairy, poultry.
- Msme loan: Credit loan for micro, small and medium enterprises.
- education: Loans up to Rs 10 lakh to study in Bharat and up to 20 lakhs for studies abroad.
- Housing: Loans to build houses in metro cities and up to 25 lakh houses in other areas.
- Vicar section: SC/ST, credit loans to women and financially disadvantaged people.
- Other: Loan for creating schools and hospitals such as export credit, renewable energy and social infrastructure.
