RBI Revises Priority Sector Lending Norms To Boost Credit Access

(MENAFN- KNN India) New Delhi, Mar 25 (KNN) The Reserve Bank of India (RBI) has announced comprehensive revisions to its priority sector lending norms, effective April 1, designed to improve credit accessibility across key economic sectors.

The updated framework introduces significant changes to loan limits, eligibility criteria, and sectoral targets, aimed at providing more financial opportunities to diverse population segments.

Home loan provisions have been notably modified, with adjusted limits and property cost ceilings across different urban categories.

In metropolitan areas with populations exceeding 50 lakh, eligible home loans have been increased from Rs 35 lakh to Rs 50 lakh, with the maximum dwelling cost rising from Rs 45 lakh to Rs 63 lakh.

Intermediate-sized cities hosting populations between 10 and 50 lakh will see loan caps of Rs 45 lakh, with a maximum unit cost of Rs 57 lakh.

Smaller urban centres with populations under 10 lakh will maintain loan eligibility up to Rs 35 lakh, with unit cost restrictions at Rs 44 lakh.

The revised guidelines also address agricultural and renewable energy sectors. Loans against agricultural produce have been restructured to enhance farmers' liquidity, while renewable energy borrowing limits have been substantially increased to Rs 35 crore for eligible borrowers.

A particularly noteworthy amendment involves support for women beneficiaries, with individual loan limits doubled to Rs 2 lakh, with urban cooperative banks experiencing additional flexibility in implementation.

Banking experts anticipate that these comprehensive modifications will inject much-needed liquidity into critical and traditionally underserved economic segments.

The RBI's strategic approach reflects a nuanced understanding of varied regional economic dynamics and a commitment to inclusive financial growth.

(KNN Bureau)

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