RBI seeks feedback on priority lending drafts by 26 November

The story in brief

RBI published separate drafts for commercial banks, small finance banks, local area banks, regional rural banks and urban cooperative banks. The commercial bank draft sets out targets and what can count as priority lending in areas such as agriculture, small business, education and housing.¹² RBI says existing instructions left out of the consolidated drafts would be repealed when final directions are issued. It plans to notify those repeals separately. The current notice invites views on the drafts and gives no date for issuing the final directions.¹ Context: Priority sector lending rules guide how banks classify and direct credit to specified sectors.

Context: Borrowers and industry groups can focus feedback on the draft for the type of bank they use.