• What is it?: PSL is an RBI-mandated requirement for banks to allocate a set portion of their loans to key priority sectors that face credit shortages but are crucial for inclusive economic growth.

  • Applicability
    • Scheduled commercial banks (both Public and private sector banks): 40% of ANBC
    • Regional Rural Bank: 75% of ANBC
    • Small finance bank and urban cooperative bank: 60% 
    • Foreign Banks with less than 20 branches: 40% of ANBC

Source: The Economic Times