ARTICLE
3 July 2025

Reserve Bank Of India Revised PSL Norms For Small Finance Banks (SFBs)

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The Reserve Bank of India, through its June 20, 2025 notification, revised Priority Sector Lending (PSL) guidelines for SFBs effective FY 2025–26.
India Finance and Banking

The Reserve Bank of India, through its June 20, 2025 notification, revised Priority Sector Lending (PSL) guidelines for SFBs effective FY 2025–26. The overall PSL target has been reduced from 75% to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of OffBalance Sheet Exposures (CEOBE), whichever is higher. While 40% must still be allocated to standard PSL categories, the remaining 20% can be deployed across any PSL sub-sectors based on a bank's strategic focus.

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