Priority Sector Lending- Banks’ lending to NBFCs for on-lending
Priority Sector Lending- Banks’ lending to NBFCs for on-lending – Extension of facility
Please refer to para 22 of Master Directions (MD) on PSL dated September 04, 2020 (updated as on June 11, 2021) wherein the facility of bank lending to NBFCs (other than MFIs) for on-lending was allowed to be classified as PSL up to September 30, 2021.
2. As announced in the ‘Statement on Developmental and Regulatory Policies’ dated October 8, 2021, the facility has been extended till March 31, 2022 keeping in view the increased traction observed in delivering credit to the underserved/unserved segments of the economy. Loans disbursed under the on-lending model will continue to be classified under Priority Sector till the date of repayment/maturity whichever is earlier. Further, bank loans to HFCs for on-lending for the purpose of housing, as prescribed in para 23 of our MD on PSL dated September 4, 2020, will continue as hitherto.
3. All other guidelines as issued vide MD on PSL ibid will continue to apply.
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