NEW DELHI: The government is considering a proposal to include electric vehicles (EVs) in priority sector lending category, a senior official said on Saturday.
“We have received a representation to include EV in priority sector. We will look at reworking the priority sector lending requirements for banks,” the official said adding the issue has to be discussed with the Reserve Bank of India.
As per RBI guidelines, it is mandatory for banks to extend 40 per cent of their adjusted net bank credit to priority sector.
Currently, seven sectors — agriculture, Micro, Small and Medium Enterprises (MSME), export credit, education, housing, social infrastructure, and renewable energy — are considered for priority sector lending (PSL).
