RBI issued Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025. 

• PSL ensure that vulnerable sections of society and underdeveloped areas get access to credit.

Key Features of the Latest RBI PSL Guidelines

• Enhanced Compliance & External Audit: RBI requires banks to obtain certification from external auditors (or CAG-empanelled auditors for specific entities like NCDC).
  • This audit ensures that the same underlying loan exposure is not claimed as PSL by both the originating bank and the intermediary (such as an NBFC or Cooperative).
• Revised Sector Targets: The PSL target for Small Finance Banks (SFBs) has been adjusted from 75% to 60% of their Adjusted Net Bank Credit (ANBC).
• Inclusion of NCDC for Rural Credit: Loans provided by banks to the National Cooperative Development Corporation (NCDC) for the purpose of on-lending to cooperative societies are now officially classified as PSL.
• Other
  • Banks are also permitted to enter into co-lending arrangements to meet PSL targets.
  • Allowed banks to treat export credit to agriculture and MSMEs as PSL loans.