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04-25-2012, 10:32 AM #1
RBI panel increases priority sector lending target for foreign banksThe Reserve Bank of India (RBI) panel on priority sector lending on Tuesday proposed that the target (priority sector) for foreign banks may be increased to 40 per cent of net bank credit from the current level of 32 per cent with sub-targets of 15 per cent for exports and 15 per cent for the MSE sector, within which 7 per cent may be earmarked for micro enterprises. The target of domestic scheduled commercial banks for lending to the priority sector may be retained at 40 per cent of net bank credit. The committee, under the chairmanship of M. V. Nair, Chairman, Union Bank of India, has re-examined the existing classification and suggested revised guidelines with regard to priority sector lending and related issues.
The committee suggested that the sector Ďagriculture and allied activities' may be a composite sector within the priority sector, by doing away with the distinction between direct and indirect agriculture. However, the targets for agriculture and allied activities would be at 18 per cent. .
A sub-target for small and marginal farmers within agriculture and allied activities is recommended, equivalent to 9 per cent, which would be achieved in stages by 2015-16....being a human...
04-25-2012, 12:45 PM #2