RBI may ease cap on regional priority sector loan portfolios by regional rural banks

At present, RBI has prescribed an enhanced target of 75% of adjusted net bank credit (ANBC) of an RRB for lending to the priority sector, against the target of 40% applicable to a commercial bank. RRBs sell their priority loan portfolio through priority sector lending certificates (PSLC) to commercial banks. They can sell these only after reaching the mandated 75% limit.

from Banking/Finance-Industry-Economic Times https://ift.tt/i53m80F