Priority Sector Lending (PSL) – Classification of exports under Priority Sector
September 25, 2019
Members of the Council,
Sub : Priority Sector Lending (PSL) – Classification of exports under Priority Sector
You are kindly aware that the Hon’ble Union Minister for Finance had recently announced a serious of measures for boosting economic growth. One of the announcements is as follows.
Priority Sector Lending (PSL) norms for Export credit have been examined and enabling guidelines are under consideration of RBI
With regard to the above announcement, the Reserve Bank of India has issued a Circular No.RBI/2019-20/66 dated 20.09.2019 stating that it has been decided to effect the following changes pertaining to export credit.
1. Enhance the sanctioned limit, for classification of export credit under PSL from Rs.250 million per borrower to Rs.400 million per borrower.
2. Remove the existing criteria of ‘units having turnover of up to Rs.1 billion’
3. The existing guidelines for domestic scheduled commercial banks to classify ‘Incremental export credit over corresponding date of the preceding year, up to 2 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher’ under PSL will continue to be applicable subject to the criteria mentioned at (1) above.
Members may kindly note the above.
Thanks & regards,
COUNCIL FOR LEATHER EXPORTS