Guidelines on lending to priority sector for Primary (Urban) Cooperative Banks (UCBs)
The Reserve Bank of India Vide its Notification RBI/2017-18/175 dated 10th May 2018 has revised the guidelines on lending to priority sector for Primary (Urban) Co-operative Banks the salient features of it are as follows:
(i) Target for lending to total priority sector and weaker section will continue as 40 per cent and 10 per cent, respectively, of Adjusted Net Bank Credit (ANBC) or credit equivalent of off balance sheet exposure, whichever is higher.
(ii) Agriculture: Distinction between direct and indirect agriculture is dispensed with.
(iii) Bank loans to food and agro processing units will form part of Agriculture.
(iv) Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector.
(v) A target of 7.5 per cent of ANBC or credit equivalent of off-balance sheet exposure, whichever is higher, has been prescribed for Micro Enterprises.
(vi) Education: Distinction between loans for education in India and abroad is dispensed with.
(vii) Micro Credit ceases to be a separate category under priority sector.
(viii) Loan limits for housing loans qualifying under priority sector have been revised.
(ix) Priority Sector assessment will be monitored through quarterly and annual statements.