Daily Current Affairs for UPSC Civil Services Exam – 05 September 2020

Daily Current Affairs for UPSC Civil Services Exam – 05 September 2020

In Today’s News:

  1. RBI releases revised Priority Sector Lending guidelines.

1. RBI releases revised Priority Sector Lending guidelines.

News Summary

Reserve Bank of India has reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities and bring a sharper focus on inclusive development, after having wide-ranging discussions with all stakeholders. Revised Priority Sector Lending(PSL) guidelines will enable better credit penetration to credit deficient areas; increase lending to small and marginal farmers and weaker sections; boost credit to renewable energy, and health infrastructure.

Prelims GS – Economic Development

Revised PSL Guidelines- Fresh categories:
  • Bank finance to start-ups (up to ₹50 crores);
  • loans to farmers for installation of solar power plants for solarisation of grid-connected agriculture pumps and
  • loans for setting up Compressed Bio-Gas (CBG) plants

have been included as fresh categories eligible for finance under priority sector.

Click here to know more about Priority Sector Lending on the 7th August 2020 Prelims content.

Mini Insights

Mains GS3 – Economic Development:

Salient features of revised PSL guidelines(Key highlights):

Some of the salient features of revised PSL guidelines are:

  1. To address regional disparities in the flow of priority sector credit, higher weightage has been assigned to incremental priority sector credit in ‘identified districts’ where priority sector credit flow is comparatively low.
  2. The targets prescribed for “small and marginal farmers” and “weaker sections” are being increased in a phased manner.
  3. A higher credit limit has been specified for Farmers Producers Organisations (FPOs)/Farmers Producers Companies (FPCs) undertaking farming with assured marketing of their produce at a pre-determined price.
  4. Loan limits for renewable energy have been increased (doubled).
  5. For the improvement of health infrastructure, the credit limit for health infrastructure (including those under ‘Ayushman Bharat’) has been doubled.

Click here to view the official PDF document of RBI Revised PSL guidelines.

 

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