RBI proposes ₹100 crore PSL cap for agri infra, food processing
In short
The RBI has proposed a ₹100-crore limit for priority sector lending classification on agriculture infrastructure loans. It also wants the same cap for food and agro-processing activities.
If adopted, the draft rules would decide how much borrowing can count as priority sector lending for these businesses and for banks that lend to them.
What the reporting says
The RBI proposed a ₹100-crore aggregate sanctioned limit per borrower across the banking system for priority sector lending classification of agriculture infrastructure loans. It also proposed a similar cap for food and agro-processing activities. The draft rules would limit how much such borrowing can qualify for priority sector treatment, affecting banks and borrowers in these segments.
Why it matters
The RBI’s draft rules would place a ₹100-crore aggregate cap per borrower on priority sector lending classification for agriculture infrastructure, and a similar cap for food and agro-processing. That affects banks’ PSL portfolios and borrowing access for large projects in these segments. The proposal changes classification rules rather than loan availability itself.