Start-up loans of up to Rs 50 cr under priority sector as RBI revises norms

Advances to weaker section now 12% of credit for scheduled banks and SFBs, rule doesn't apply to foreign lenders with under 20 branches. RRBs already have to lend 15% to weaker sector

The Reserve Bank of India (RBI) on Friday said loans of up to Rs 50 crore towards start-ups would qualify for the priority sector, alongside renewable energy used for agriculture. The central bank also doubled the overall limit for such renewable energy and health care as part of its revision to priority sector guidelines.

The revised guidelines are aimed at aligning them with “emerging national priorities and bring sharper focus on inclusive development”, said the RBI. These will enable better credit penetration to credit-deficient areas, increase lending to small and marginal farmers and weaker sections, and boost credit to renewable energy