RBI extends priority sector landing, Start-ups to get loans up to Rs 50 crore.

Economic Activity

Apart from the start-ups and the agriculture sector, the lending limit on health infrastructure will also double.

The Reserve Bank of India (RBI) has expanded the rules for Priority Sector Lending (PSL). This will help start-ups and the renewable energy sector. Under the new rules, start-ups will now get loans of up to 50 crores. It has doubled the loan limit for the solar plant and biogas for the farmers.

Promote different sectors

To give a boost to the staggering economy, the RBI has increased the lending limit to promote rural areas and other sectors, including start-ups. It also includes health infrastructure. The debt limit in the government scheme Ayushman Bharat has doubled, which has now increased to 10 crores. This will strengthen health facilities in Tier-2 to Tier-4 cities.

Loan limit doubled

The loan limit has almost doubled to strengthen the renewable energy sector, which has now increased to 30 crores. Under the PSL, solar-based power generators, biomass-based power generators, windmills, and micro-hydel plants have included.

In addition, public utility-based non-conventional energy for loans, such as street lighting systems and electrification in far-flung areas, will also include in the PSL, according to the new RBI guidelines that the per capita loan limit in each household will be up to 10 lakh.

Higher loan limit set

The RBI has now fixed higher credit limits for Farmers Producer Organizations (FPOs) / Farmer Producer Companies (FPCs) with assured marketing of their produce at a fixed price. RBI has stated that it will increase the targets set for small and marginal farmers and weaker sections in a phased manner, strengthening rural and small-scale industries.


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