Union Minister of State for Finance Pankaj Chaudhary informed that Rs 25,000 crore from the Priority Sector Lending (PSL) shortfall fund has been allocated to the Short-Term Cooperative Rural Credit Refinance Fund (STCRC-RF) for FY 2024-25, which is administered by Nabard.
He further stated, “To augment the availability of funds for STCRC-RF during the current financial year, an additional allocation of Rs 7,000 crore has been made.”
The objective of Priority Sector Lending (PSL) is to ensure that vulnerable sections of society have access to credit and that resources flow to sectors with high employment potential, thereby contributing to poverty alleviation.
Accordingly, RBI has mandated Priority Sector Lending targets ranging between 40% and 75% of Adjusted Net Bank Credit (ANBC), depending on the category of banks.
Funds from the PSL shortfall are utilized for the development of rural and urban infrastructure, agriculture, MSMEs, and affordable housing, ensuring inclusive economic growth.
