Question : PRIORITY SECTOR LENDING

(a) whether the scheduled commercial banks provide loans to priority sectors as per the guidelines framed by the Reserve Bank of India (RBI);

(b) if so, the details thereof;

(c) whether the Government proposes to introduce Priority Sector Lending Certificate (PSLC) on the lines of carbon credit trading; and

(d) if so, the details thereof?

(MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI JAYANT SINHA)

(a) & (b): As per extant guidelines of Reserve Bank of India (RBI) on Priority Sector Lending (PSL), a target of 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as of preceding March 31st, has been mandated for lending to the Priority Sector by domestic Scheduled Commercial Banks (SCBs) and foreign banks with 20 and above branches. Within this, sub-targets of 18 percent and 10 percent of ANBC or Credit Equivalent amount of OBE, whichever is higher, as of preceding March 31st, have been mandated for lending to agriculture and the weaker sections, respectively.

The performance of SCBs with regard to PSL achievement for the last two years is as follows:-

	(Amount in Rs. billion) As on March 31st	Public Sector Banks	Private Sector Banks	Foreign Banks 2013	12,822 (36.2)	3,274 (37.5)	849 (35.1) 2014	16,190 (39.4)	4,645(43.9)	907 (35.8)