New (Priority Sector Lending) PSL Framework: How Banks Can Offset Shortfalls with Strategic Contributions

Unknown Apr 02, 2026 750 Views

The Reserve Bank of India (RBI) has introduced new prudential treatment guidelines for banks failing to meet Priority Sector Lending (PSL) targets, allowing contributions to eligible funds such as NABARD, NHB, SIDBI, and MUDRA Ltd. to offset shortfalls. The move aims to enhance credit flow to pri...