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Norms for PSL are different for Indian and foreign banks. Indian banks are required to lend 40% of their advances to Priority sector. Of this, 18% of total advances should go for Agriculture & Allied activities by way of direct or indirect (investing in NABARD Bonds) lending. 10% of the advances should go to Small Scale Industries. 4% (10% of PSL) should go to weaker sections and 1% of the total advances should go to DRI schemes. The remaining 7% can be lent in either the mentioned segements or to "Other Priority Sector", which comprises small road transport operators, small business, village and cottage industries, etc.
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