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Priority Sector Lending

Every RBI rule that touches Priority Sector Lending, simplified for bankers. 0 published.

OverviewPriority Sector Lending directs a defined share of credit toward agriculture, micro and small enterprises, weaker sections, housing, education, renewable energy and other developmental categories. The framework sets sub-targets, defines eligible exposures, and operates a tradable mechanism — Priority Sector Lending Certificates — that lets banks meet shortfalls efficiently while keeping credit flowing to underserved segments.
Key dataSee the numbers behind Priority Sector Lending: Credit & Deposit Growth — bank credit & deposit growth trends, updated from official RBI data. Related live data: NPA / Asset-Quality Tracker.
Key termsPlain-English definitions of the terms on this page — see the full Indian banking glossary. Priority Sector Lending (PSL) · Scheduled Commercial Bank (SCB) · Credit-deposit ratio (CD ratio) · Kisan Credit Card (KCC) · MUDRA loan (PMMY)
Part of clusterThis topic is part of the Compliance & Prudential Norms cluster — explore related rules, FAQs and live data across the theme.

Latest circulars in this cluster

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Frequently asked questions

What counts as priority-sector lending?

Eligible categories include agriculture, micro/small/medium enterprises, export credit, education, housing within defined limits, social infrastructure, renewable energy and lending to weaker sections, each with its own conditions.

What are PSL Certificates?

Priority Sector Lending Certificates let a bank that has lent beyond its target sell the excess, and a bank short of its target buy it, without transferring the underlying loan. It is a market mechanism to meet sub-targets efficiently.

Do PSL targets differ by bank type?

Yes — targets and sub-targets vary across commercial banks, small finance banks, regional rural banks and co-operative banks. The applicable circular for your category is linked in the cluster below.

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