EVs, green hydrogen to soon come under priority sector lending: Report

Loans for electric vehicles and green hydrogen may soon be categorised under priority sector lending (PSL) by banks. Several banks have suggested the move to the Reserve Bank of India (RBI), a report in Economic Times (ET) said.

Banks reportedly told the RBI that categorising such loans as a priority will help fill the “financing gaps” in these sectors, the report added.

Also, it will help banks to meet their PSL targets. Currently, banks are required to make 40 per cent of their total lending towards priority sectors.

“Expanding the PSL category will also help lenders meet their requirements, which they are unable to do presently and are required to buy priority sector lending certificates,” an official aware of the matter told ET.