Priority Sector Lending norms for Regional Rural Banks revised by RBI

Considering the growing significance of RRBs in pursuit of financial inclusion agenda, its priority seector lending guidelines have been revised.
Some of the changes are:
1. Categories of the Priority Sector: Medium Enterprises, Social Infrastructure and Renewable Energy will form part of the Priority Sector, in addition to the existing categories, with a cap of 15 per cent of total outstanding.
2. Priority Sector Lending will be monitored on a quarterly as well as annual basis.
3. Agriculture: 18% per cent of total outstanding should be advanced to activities mentioned under Agriculture.
4. Small and Marginal Farmers: A target of 8 percent of total outstanding has been prescribed for Small and Marginal Farmers within Agriculture.
5. Weaker Sectors: A target of 15 per cent of total outstanding has been prescribed for Weaker Sections.
Categories under Priority Sector lending are:
1. Agriculture
2. Micro, Small and Medium Enterprises (MSMEs)
3. Education
4. Housing
5. Social Infrastructure
6. Renewable Energy
7. Others
Priority Sector 
Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation i.e. priority sector lending. This is imposed by RBI in order to provide a specified portion of the bank’s lending to the few specific sectors mentioned above.
If PSL is not met then:
1. Indian Banks and Foreign banks (with 20 or more branches) will have to send remaining target money to RIDF (Rural infra. Development fund).
2. Foreign banks (with less than 20 branches) will have to send remaining target money to SEDF (small enterprises development fund).