Rrbs Exceed PSL Targets With Strong Push To Agriculture, Micro Enterprises: Govt

2026-02-04 02:10:12

(MENAFN- KNN India) New Delhi, Feb 4 (KNN) Regional Rural Banks (RRBs) have significantly exceeded their prescribed Priority Sector Lending (PSL) targets, particularly in agriculture and micro enterprises, according to information shared by Minister of State for Finance Pankaj Chaudhary in a written reply to the Rajya Sabha.

RBI Norms for Priority Sector Lending

The Minister said that the Reserve Bank of India (RBI) issued updated Master Directions on Priority Sector Lending (PSL) on March 24, 2025, laying down specific targets and sub-targets for RRBs.

Under the revised norms, Regional Rural Banks (RRBs) must allocate 75 percent of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBSE) to priority sectors.

This includes 18 per cent for agriculture, of which 14 percent is for Non-Corporate Farmers, with 10 percent specifically for Small and Marginal Farmers, 7.5 percent for micro enterprises, and 15 percent for weaker sections.

The targets and sub-targets are calculated based on ANBC or CEOBSE as applicable, as on the corresponding date of the preceding year.

RRBs Exceed Overall PSL Targets

As per RBI data for 2024–25, RRBs have surpassed the overall priority sector lending requirement. Total PSL by RRBs stood at 88.44 percent, well above the mandated 75 percent target.

Strong Credit Flow to Agriculture and Micro Enterprises

RRBs have also exceeded sector-specific benchmarks. Lending to the agriculture sector reached 30.36 percent, substantially higher than the prescribed sub-target, while credit to micro enterprises accounted for 22.77 percent of total lending, far exceeding the 7.5 percent requirement.

The Minister said these figures reflect the sustained role of Regional Rural Banks in expanding institutional credit to farmers, small businesses and rural enterprises, supporting inclusive growth and financial inclusion across the country.

(KNN Bureau)

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