For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBI relaxes priority loan eligibility norm for MFIs on lending

By Religare
|
RBI relaxes priority loan eligibility norm for MFIs
Reserve bank has made the bank credit for onlending by Micro Finance Institutions (MFIs) eligible for categorisation as priority sector lending if at least 70 per cent ( it was 75 per cent earlier) of loans given by MFIs is for income generating activity.
 

In a notification, RBI said, "...it has been decided that bank credit to MFIs for onlending will now be eligible for categorisation as priority sector advance if aggregate amount of loan, extended for income generating activity, is not less than 70 per cent of the total loans given by MFI."

Lending towards agriculture, micro and small enterprises, education, housing, and export credit are termed as priority sector lending.

As per RBI norms, domestic banks are advised to achieve the target of priority sector lending at 40 per cent.

However, foreign banks with 20 and above branches in the country are required to be at par with domestic banks for priority sector targets in a phased manner over a maximum period of 5 years beginning April 1, 2013 i.e., till March 31, 2018.

Read more about: rbi
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more