Priority saector lending _ RBI changed classificaton

Priority sector are those sector of the Economy which if not designated as priority sector may not get adequate credit . Priority sector lending are small value loan and  includes Loan given to SME segment , agriculture, low housing , education loan , loan to low income group and weaker section of the society . RBI has  increased the target for priority sector lending for Foreign Banks in India . At present the requirment for State Run Bank is 40% and Foreign Banks it is 32% . Now all Foreign Banks having more then 20 Branches will have to lend 40% to Priority sector  similar to state run Bank . Other foreign Bank  will continue to adhere to 32% requirment .  These Foreign Banks having target of 32% will also not have any sub target under various category . The new target has to be achived in phased manner ( maximum five years )  starting from 1st April 2013 . The impacted foreign Banks will be giving the plan for implementing these new norm and get it approved from RBI