EVs, green hydrogen to soon come under priority sector lending: Report

Currently, 8 sectors are eligible to get lending under the PSL mechanism including agriculture, MSMEs, export credit, housing, education, renewables, and social infrastructure sectors

Loans for electric vehicles and green hydrogen may soon be categorised under priority sector lending (PSL) by banks. Several banks have suggested the move to the Reserve Bank of India (RBI), a report in Economic Times (ET) said. 

Banks reportedly told the RBI that categorising such loans as a priority will help fill the "financing gaps" in these sectors, the report added. 

Also, it will help banks to meet their PSL targets. Currently, banks are required to make 40 per cent of their total lending towards priority sectors. 

"Expanding the PSL category will also help lenders meet their requirements, which they