The Reserve Bank of India (RBI) on Friday said loans of up to Rs 50 crore towards start-ups would qualify for the priority sector, alongside renewable energy used for agriculture. The central bank also doubled the overall limit for such renewable energy and health care as part of its revision to priority sector guidelines.
The revised guidelines are aimed at aligning them with “emerging national priorities and bring sharper focus on inclusive development”, said the RBI. These will enable better credit penetration to credit-deficient areas, increase lending to small and marginal farmers and weaker sections, and boost credit to renewable energy and health infrastructure, it said.
Once lending is done under priority sector, the rates are subsidised and in some cases, the government also chips in with subvention. The RBI did the last such priority sector revision in 2015.
