7/29/2019 New Dfinition of Priority Sector Advances

1/2

, . 5, - 32 , () - 122001. 0124-4126147/148/149/150 . 0124-4126162

Rural Development & Priority Sector Department

Head Office: 1st Floor, Plot No - 5, Sector 32

Institutional Area, Gurgaon, Haryana122001.

Telephone No 01244126147/148/149/150

Fax no. 0124 - 4126162

Circular No. HO/RD & PS/47/2012-13/554 Date : 03.11.2012

All the Branches/Offices

PRIORITY SECTOR LENDINGTARGETS AND CLASSIFICATION

The master circular on Priority Sector Lending Target and Classification issued by RBIvide their circular no. RBI/2012-13/138 RPCD. CO. Plan. BC 13/04.09.01/2012-13 dated

July 20, 2012 was circulated vide our circular no. HO: RD &PS:29:2012-13:324 21.07.2012.

The RBI vide their letter RPCD. CO. Plan. BC 37/04.09.01/2012-13 dated October 17, 2012,

has made the following additions and amendments in the aforesaid master circular dated

20.07.2012:-

Agriculture:-

Loans to corporates, partnership firms and co-operatives of farmers directly engagedin Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry,

bee-keeping and sericulture (up to cocoon stage) up to an aggregate limit of`2 crore

per borrower shall be classified under DIRECT Agriculture.

If the aggregate loan limit per borrower is more than `2 crore to such entrepreneurs,the entire loan should be treated as INDIRECT finance to agriculture.

Micro & Small Enterprises (Service Sector):-

Bank loans upto an aggregate loan limit of

`2 crore per borrower/unit to Micro and

Small Enterprises (MSE) engaged in providing or rendering of services will be

eligible for classification as direct finance to MSE Sector under priority sector,

provided they satisfy the investment criteria for equipment as defined under MSMED

Act, 2006.

Housing Loan:-

The ceiling to any governmental agency for construction of dwelling units or forslumclearance and rehabilitation of slum dwellers has been raised from of `5 lakh to `10

lakh.

7/29/2019 New Dfinition of Priority Sector Advances

2/2

The ceiling total cost of house has been raised from `5 lakh to `10 lakh per dwellingunit for the loans sanctioned for housing projects exclusively for the purpose of

construction of houses only to economically weaker sections and low income groups.

Bank loans to Housing Finance Companies (HFCs), approved by NHB for theirrefinance, for on-lending for the purpose of purchase/construction/reconstruction of

individual dwelling units or for slum clearance and rehabilitation of slum dwellers,

subject to an aggregate loan limit of`10 lakh per borrower, provided the all inclusive

interest rate charged to the ultimate borrower is not exceeding lowest lending rate of

the lending bank for housing loans plus two percent per annum shall be covered under

priority sector.

The eligibility under priority sector loans to HFCs is restricted to five percent of the

individual banks total priority sector lending, on an ongoing basis.

A copy of additions/amendments is enclosed as Annexure-A (RBI circular dated

17.10.2012). All field functionaries including officers of Regional Offices are advised to go

through these additions/amendments and comply with all instructions/guidelines contained

therein in letter and spirit.

Please note that the additions and amendments will be operational with effect from July

20, 2012.

(P S Hooda)

General Manager (RD & PS)

http://localhost/var/www/apps/conversion/tmp/scratch_3/SLPS2012047-Annex%20I.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_3/SLPS2012047-Annex%20I.pdf