## PSL 1. A ==[short history on Priority Sector Lending](RBI_Notification_20140701_Master%20Circular%20-%20Priority%20Sector%20Lending-Targets%20and%20Classification.pdf#page=2&selection=0,0,0,12)== in the Master Circular-Priority Sector Lending-Targets and Classification, dated July 1, 2014 2. May 3 2011 - [Categorisation](NBFCs.md#^9b48e9) of bank loans to NBFC-MFIs under the priority sector 3. [Aug 13, 2019](RBI_Notification_20190813_Priority%20Sector%20Lending%20–%20Lending%20by%20banks%20to%20NBFCs%20for%20On-Lending.pdf) - RBI allowed the on-lending/indirect lending model for bank credit to NBFCs for Agriculture/MSE/Housing to be eligible for classification as priority sector, subject to conditions. It helped to pump money into NBFCs after the IL&FS crisis. 4. [August 07, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Id=13674&Mode=0) - Reserve Bank of India (Priority Sector Lending – Targets and Classification) Second Amendment Directions, 2026 was issued. RBI clarified that following advances extended in India **will be excluded from** calculation of Adjusted Net Bank Credit (ANBC): 1. a) advances against the fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilised (including deposits that are renewed upon maturity) by the banks between June 08, 2026 and September 30, 2026, and 2. b) advances against NRE term deposits of three years or more mobilised (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026. ### Adjusted Net Bank Credit (ANBC) 1. ANBC (or CEOBE, whichever is higher, is used as the base) for PSL. The PSL target is then set as % of this base amount, like for domestic commercial banks and foreign banks with 20+ branches it is simply 40% of that base figure. 2. It is to be noted that it is "Net" (net of any rediscounting) and then "Adjusted (added/deducted)" with other credit/investments/deposits of banks lying in RIDF or with NABARD, etc. ##  Guidelines/instructions/directives 1. [Master Directions - Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12799), dated March 24, 2025 1. [Master Directions – Priority Sector Lending (PSL) – Targets and Classification](RBI_Master%20Directions-20200904_Master%20Directions%20–%20Priority%20Sector%20Lending%20(PSL)%20–%20Targets%20and%20Classification.pdf), dated September 04, 2020 *(withdrawn)* 2. [Master Circular-Priority Sector Lending-Targets and Classification](RBI_Notification_20140701_Master%20Circular%20-%20Priority%20Sector%20Lending-Targets%20and%20Classification.pdf), dated July 1, 2014 *(withdrawn)* 3. [Master Circular - Priority Sector Lending- Targets and Classification](RBI_Notification_20150701_Master%20Circular%20-%20Priority%20Sector%20Lending-%20Targets%20and%20Classification.pdf), dated July 1, 2015 *(withdrawn)* 4. [Master Circular - Priority Sector Lending-Targets and Classification](RBI_Notification_20130701_Master%20Circular%20-%20Priority%20Sector%20Lending-Targets%20and%20Classification.pdf), dated July 1, 2013 *(withdrawn)* 2. [FAQs on Priority Sector Lending (PSL)](https://rbi.org.in/scripts/FAQView.aspx?Id=87), 3. July 1, 2014 - Master Circular - Priority Sector Lending-Targets and Classification, up to June 30, 2014 ## Related Notes 1. [General Credit Card (GCC) Facility](General%20Credit%20Card%20(GCC)%20Facility.md) 2. [Differential Rate of Interest (DRI) scheme](Differential%20Rate%20of%20Interest%20(DRI)%20scheme.md) 3. [NBFC-MFI](NBFCs.md#NBFC-MFI)