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RBI strengthens priority sector lending oversight

Financial Express Pune

|

January 20, 2026

REFINED FRAMEWORK

- FE BUREAU

THE RESERVE BANK of India (RBI) on Monday issued a comprehensive set of amendments to the Priority Sector Lending (PSL) — Targets and Classification Directions, 2025, refining earlier provisioning on how banks compute adjusted net bank credit (ANBC), classify assets, and report PSL exposures.

Effective immediately, the amendments tighten operational clarity, align PSL norms with updated regulatory frameworks, and strengthen oversight on on-lending and credit risk transfer mechanisms.

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