REVISED PRIORITY SECTOR LENDING NORMS - BOOST TO SOCIAL INFRASTRUCTURE AND RENEWABLE ENERGY
Keywords:
Priority Sector Lending, Social Infrastructure, Renewable Energy, Rural Infrastructure Development FundAbstract
The genesis of Priority Sector Lending can be traced out from July 1968, where in the meeting of National Credit Council it was emphasised that commercial banks should increase their involvement in the financing of priority sectors, viz., agriculture and small scale industries. The description of the priority sectors was later formalised in 1972 on the basis of the report submitted by the Informal Study Group on Statistics relating to advances to the Priority Sectors constituted by the Reserve Bank in May 1971. From time to time certain modification was done in the extant guidelines to meet the financial inclusion goals of the country. As far as present priority sector lending norms are concerned, an Internal Working Group (IWG) was set up in July 2014, to revisit the existing priority sector lending guidelines. The report of the IWG was placed in the public domain inviting comments. The recommendations of the IWG were examined in the light of the comments / suggestions received from Government of India, banks, and other stakeholders and revised guidelines are being issued. The latest guidelines of priority sector lending will be boost to economy and boon to Banks. Two new categories have been added under priority sector i.e. Social Infrastructure and Renewable Energy. The loan limits for housing loans under priority sector have been revised which will again help the economy. The study will discuss about new norms of priority sector lending.
References
I. Reserve Bank of India. (2014, February 1). Retrieved June 12, 2015, from www.rbi.org.in: https://www.rbi.org.in/scripts/FAQView.aspx?Id=87
II. Indian Institute of Banking and Finance. (n.d.). Retrieved June 12, 2015, from www.iibf.org.in: http://www.iibf.org.in/documents/priority-lending-ii.pdf
III. Business Standard. (2015). RBI revamps priority sector lending norms. Retrieved October 25, 2015, from http://www.business-standard.com: http://www.business-standard.com/article/finance/rbi-revamps-priority-sector-lending-norms-115042400043_1.html
IV. Business Today. (2015). RBI revises priority sector lending norms to include sanitation, renewable energy. Retrieved October 11, 2015, from http://www.businesstoday.in/: http://www.businesstoday.in/money/banking/reserve-bank-of-india-revises-priority-sector-lending-norms/story/216455.html
V. Confederation of Indian Industry. (2010). The Gujarat vision: Making MSMEs globally competitive. MSME Linkages (pp. 1-49). Ahmedabad: Prince Waterhouse Coopers.
VI. Deepti, K. C., & Champatiray, A. K. (2011). Effects of Reserve Bank of India (RBI) Regulations on Priority Sector Lending for Micro Finance Institutions (MFIs). XIFMR Research .
VII. DNA India. (2015). RBI revises priority sector lending norms, includes more categories. Retrieved October 11, 2015, from http://www.dnaindia.com/: http://www.dnaindia.com/money/report-rbi-revises-priority-sector-lending-norms-includes-more-categories-2080121
VIII. IFMR. (2015). IFMR Investments Newsletter Impact through Investments. Retrieved October 11, 2015, from http://investments.ifmr.co.in/: http://investments.ifmr.co.in/wp-content/uploads/2014/06/Fintelligence_22_Revision-in-Priority-Sector-Lending-Targets-and-Classification.pdf
IX. Kathuria, V., S, R. N., & Sen, K. (2013). The effects of economic reforms on manufacturing dualism : Evidence from India. Journal of Comparative Economics, 1240–1262.
X. NABARD. (2014). State Focus Paper. Ahmedabad.
XI. Naidu, N. V., & Nair, M. S. (2014, July). Financial Liberalisation And Determinants of Profitability of Commercial Banks in India. Munich Personal RePEc Archive, 1-18.
XII. Rao, R. R. (n.d.). Priority Sector Lending and Inclusive Growth. FICCI.
XIII. Reserve Bank of India. (2014). Reserve Bank of India Annual report 2013-14. Mumbai: rbi press.
XIV. Reserve Bank of India. (2015). Database On Indian Economy. Retrieved October 25, 2015, from dbie.rbi.org.in: http://dbie.rbi.org.in/DBIE/dbie.rbi?site=home
XV. Reserve Bank of India. (2015). Handbook of Statistics on Indian Economy 2014-15. Retrieved October 2, 2015, from rbi.org.in: https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy
XVI. Reserve Bank of India. (2015). Priority Sector Lending-Targets and Classification. RBI, Department of Banking Regulation. Mumbai: rbi press.
XVII. Reserve Bank of India. (2015, August 27). Reserve Bank of India Annual Report 2014-15. Mumbai: Reserve Bank of India.
XVIII. Reuters. (2015). RBI revises priority sector lending norms. Retrieved October 25, 2015, from http://in.reuters.com/: http://in.reuters.com/article/2015/03/02/india-rbi-guidelines-idINKBN0LY1ED20150302
XIX. The Hindu. (2015). Reserve Bank revises norms for priority sector lending. Retrieved October 25, 2015, from http://www.thehindu.com/: http://www.thehindu.com/business/Industry/reserve-bank-revises-norms-for-priority-sector-lending/article7134843.ece
XX. The Hindu Business Line. (2015). RBI revises priority sector lending norms, adds more categories. Retrieved October 25, 2015, from http://www.thehindubusinessline.com: http://www.thehindubusinessline.com/money-and-banking/rbi-revises-priority-sector-lending-norms-adds-more-categories/article7134808.ece
XXI. Times of India. (2015). RBI changes priority sector lending norms. Retrieved October 25, 2015, from http://timesofindia.indiatimes.com: http://timesofindia.indiatimes.com/business/india-business/RBI-changes-priority-sector-lending-norms/articleshow/47034036.cms
XXII. Venugopal, G. (2014, October). Priority Sector Lending by Financial Institutions (with sepcial reference to coimbator district). Asia Pacific Journal of Research, I(XVIII), 84-92.
Additional Files
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 International Education and Research Journal (IERJ)
This work is licensed under a Creative Commons Attribution 4.0 International License.
