RBI Circular on Priority Sector Lending 2025 | RBI PSL norms | RBI Master Circular | #5minsummary

The Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025 are effective starting April 01, 2025. These directions are issued under the authority of Sections 21 and 35A read with Section 56 of the Banking Regulation Act, 1949, and they supersede the previous Directions issued in 2020. The overall purpose of these Directions is to establish a framework that ensures an adequate flow of credit from the banking system to crucial sectors of the economy, particularly focusing on credit-worthy segments whose needs remain underserved, thereby achieving a strategic reset for inclusive credit, addressing regional credit imbalances, and aligning credit allocation with national development goals. #rbibulletin