The Reserve Bank of India in its notification dated 20th September, 2019 amended the Para 8 of the “Master Direction on Priority Sector Lending-targets and Classification”. The Master direction was released on July 7, 2016 which pertains to export credit. This decision has been taken in order to boost credit to export sector.
RBI has decided to:
- Enhance the sanctioned limit, for classification of export credit under PSL, from ₹ 250 million per borrower to ₹ 400 million per borrower.
- Remove the existing criteria of ‘units having turnover of up to ₹ 1 billion.
The existing guidelines for domestic scheduled commercial banks to classify ‘Incremental export credit over corresponding date of the preceding year, up to 2 per cent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher’ under priority sector lending will continue to be applicable subject to the criteria mentioned at (I).
No change has been made in the present instructions in respect of foreign banks.
Click here to read the notification.
