RBI Priority Sector Lending Revision: Housing, RE and UCB Targets
Why in the news
The RBI refreshed priority sector lending (PSL) norms to widen housing credit, back renewable energy and relax targets for urban cooperative banks.
Housing loan limits
| City population | Loan limit | Dwelling cost cap |
|---|---|---|
| Above 5 million | ₹50 lakh | ₹63 lakh |
| 1-5 million | ₹45 lakh | ₹57 lakh |
| Below 1 million | ₹35 lakh | ₹44 lakh |
- Earlier: ₹35 lakh in metros, ₹25 lakh elsewhere.
Other changes
- Renewable energy: generators and public utilities now up to ₹35 crore (was ₹30 crore); households still ₹10 lakh.
- UCBs: target now 60% of ANBC or CEOBSE, whichever is higher, against the earlier 75% due by FY26.
- Weaker-section list widened; UCB cap on loans to women removed.
Status
- In FY24, PSL by scheduled commercial banks grew 16.9% (FY23: 10.8%); all bank groups hit their targets.
Exam angle
- Terms: ANBC, CEOBSE, UCB, PSL.