The Reserve Bank of India (RBI) has published draft directions for consultation to consolidate existing priority sector lending (PSL) targets and classification rules into separate texts for five bank categories. The exercise follows amendments in January 2026 that revised PSL target calculations and conditions for lending to qualify. The drafts comprise one set for commercial banks and separate sets for small finance banks, local area banks, regional rural banks and urban cooperative banks. Existing instructions not included in the consolidated directions would be repealed when the directions are issued. The RBI will notify those repeals separately.
RBI consults on consolidating priority sector lending rules into separate directions for five bank categories
The Reserve Bank of India is consulting on consolidating priority sector lending targets and classification rules into separate directions for five bank categories. Existing instructions excluded from the consolidated directions would be repealed upon issuance, with the repeals notified separately.