Reserve Bank of India has comprehensively reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities and bring sharper focus on inclusive development, after having wide ranging discussions with all stakeholders.
Revised PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and weaker sections; boost credit to renewable energy, and health infrastructure.
RBI issued instructions to all the Financial Institutions including Banks, Cooperative Banks, NBFC’s and other FI’s to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard,
RBI brings in norms to curb malpractices by lending apps. RBI had to bring in these norms as hundreds of lending apps have mushroomed over the past year or so. RBI has made banks or NBFCs directly responsible for the actions of the digital platforms they have tied up with. RBI said that digital platforms and lenders must make adequate efforts towards the creation of grievance redressal mechanism.