 "RBI has said banks and HFCs need to strengthen their screening process in respect of lending to the segment")
The Reserve Bank of India (RBI) has increased the loan limits for banks and housing finance companies (HFC) so that these financial institutions can meet their priority sector lending (PSL) requirements.
Pressure on banks to compensate and build their book at the last minute to meet PSL requirements during the end of every financial year has been eased, thanks to the RBI’s intervention, said analysts.
The RBI has increased the housing loan limits for PSL eligibility from Rs 2.8 million to Rs 3.5 million in centres with a population of one million and above, and from Rs 2 million to
