Tamil Nadu opposes provision in Master Directions for priority lending

CM Palaniswami says state seems to have been singled out for adverse treatment as all 32 districts (prior to bifurcation) have been categorised as having comparatively high flow of priority credit

Tamil Nadu Chief Minister Edappadi K Palaniswami on Tuesday opposed a provision in the recent Master Directions for Priority Sector Lending issued vide RBI.

In a letter to Prime Minister Narendra Modi, the chief minister said the Master Directions, which cover "all of Tamil Nadu" in the disincentive framework for priority sector lending, contain a very disturbing and discriminatory provision.

He said paragraph 7 of the Master Directions entitled “Adjustments for weights in PSL Achievement” contains a provision to incentivise flow of priority sector credit to districts with comparatively lower flow of credit, by according them a higher weightage of 125 per