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2009-11-02

RBI to change priority list, SMEs may get bigger share

The RBI is considering change in the norms of priority sector lending which might bring a bigger share of the lending to small and medium businesses (SMEs).

The RBI is considering change in the norms of priority sector lending which might bring a bigger share of the lending to small and medium businesses (SMEs).

 

The rising demands of the emerging sector and its potential of employment generation have led the apex bank to consider lending norms though the overall priority sector lending limit will remain unchanged at 40% of loans.

 

Banks are required to earmark up to 40% of their loans to sectors that the government deems important. These priority sectors include agriculture, housing, minorities, small scale industry and education.

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