NCLAT: Unenforced Equitable Mortgage is Corporate Debtor’s Asset, Not to Be Treated as Margin Money  ||  NCLT Approves Hindustan Unilever’s Ice Cream Business Demerger into Kwality Wall’s  ||  Supreme Court: Bar Councils Cannot Charge Over Rs 750 for Enrollment or Withhold Applicants’ Docs  ||  SC Cancels POCSO Conviction, Observing Crime Resulted from Love, Not Lust, After Marriage  ||  Supreme Court: Advocates Can be Summoned Only under S.132 BSA Exceptions with Prior Officer Approval  ||  Allahabad HC: Juvenile Conviction Cannot be Treated as Disqualification for Government Jobs  ||  Delhi HC: DV Act Rights of Daughter-in-Law Cannot Deny In-Laws’ Right to Reside in Home  ||  Delhi HC: Waitlist Panel Cannot Be Segregated, Vacancies Must Be Filled From Valid Waitlist  ||  Delhi HC: Matrimonial FIR Cannot Be Quashed If Couple’s Settlement Agreement is Not Executed  ||  Delhi HC Bars All India Carrom Federation from Using “India” or “Indian” in its Name    

Priority Sector Lending - On-lending by Small Finance Banks to NBFC-MFIs- (Reserve Bank of India) (05 May 2021)

MANU/RMIC/0066/2021

Banking

As per extant guidelines, lending by Small Finance Banks (SFBs) to Micro-Finance Institutions (MFIs) for on-lending is not reckoned for priority sector lending (PSL) classification. In view of the fresh challenges brought on by the COVID-19 pandemic and to address the emergent liquidity position of smaller MFIs, it has been decided to allow PSL classification to the fresh credit extended by SFBs to registered NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI recognised 'Self-Regulatory Organisation' of the sector and which have a 'gross loan portfolio' of upto Rs.500 crore as on 31 March 2021, for the purpose of on-lending to individuals. Bank credit as above will be permitted up to 10% of the bank's total priority sector portfolio as on 31 March, 2021.

2. The above dispensation shall be valid upto March 31, 2022. However, loans thus disbursed will continue to be classified under Priority Sector till the date of repayment/maturity whichever is earlier. Further, banks will be required to adhere to the conditions prescribed for on-lending under para 21 of our Master Directions on PSL dated September 4, 2020 (updated as on April 29, 2021).

3. The guidelines shall come into effect from the date of the issuance of this circular.

Tags : PRIORITY SECTOR   LENDING   NBFC-MFIS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved