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RBI PSL Amendment Directions 2026: Securitised Loan Checks

21 January 20261 min read
BANKING & FINANCERBI PSL AmendmentDirections 2026:Securitised LoanChecks21 January 2026safalsetu.com

Why in the news

Finding that directly originated PSL assets perform better than purchased ones, RBI amended its directions in 2026 to protect PSL integrity.

Verification

  • Check eligibility of the underlying portfolio via external auditor certificates of the originator, or sample checks.
  • Write the norms into internal policy manuals.

Eligibility

  • Priority sector categories (not ‘others’) count based on underlying assets.
  • Excluded: NBFC gold jewellery loans.
  • Credit to NCDC for on-lending to cooperatives is eligible.

Limits

ItemRule
ChargesNone on PSL loans up to ₹50,000
SHGs / JLGs₹50,000 cap per member
Housing via NHB-approved HFCsHousing category; ₹20 lakh per borrower; borrower-wise records and auditor certificates

Exam angle

  • Limits: ₹50,000 and ₹20 lakh.
  • Terms: securitisation, direct assignment.

Test yourself

1. Under RBI's 2026 PSL amendment, up to what loan amount are no loan-related charges allowed on priority sector loans?

No guarantee, inspection or service fees on PSL loans up to ₹50,000.

2. Which loans originated by NBFCs are not eligible as PSL through securitisation notes?

Gold jewellery loans by NBFCs are excluded.

3. What is the aggregate PSL housing limit per borrower for loans via HFCs approved by National Housing Bank?

The aggregate limit is ₹20 lakh per borrower.