# RBI Proposes ₹100 Crore PSL Limit for Agri-Infrastructure New draft guidelines aim to boost institutional credit flow to underserved agricultural sectors. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-11-05 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/1c968f63-9f38-4aa0-9d08-85f5d970fb92 ## Proposed Lending Caps The Reserve Bank of India has introduced draft guidelines proposing a ₹100 crore limit per borrower for agriculture infrastructure and food processing projects. This initiative aims to classify these loans under Priority Sector Lending, ensuring that vital but underserved sectors receive necessary financial support to enhance national economic development and productivity. ## Verification and Compliance Banks must independently verify aggregate exposure for each borrower to ensure the ₹100 crore limit is not exceeded across the system. Borrowers are required to provide declarations regarding existing loans from other institutions. This facility-wise calculation ensures that these specific infrastructure loans remain distinct from other priority and non-priority sector exposures. ## Eligible Infrastructure Projects Qualifying agriculture infrastructure includes warehouses, market yards, cold-storage facilities, silos, and seed production units. Additionally, food and agro-processing activities are eligible under the new framework. Transport vehicles, such as specialized cold-storage trucks, qualify only if they are used exclusively for the distribution of food and agro-processed products within the country. ## Existing PSL Targets The RBI maintains the overall Priority Sector Lending target at 40% of adjusted net bank credit. Agriculture remains a core component, accounting for 18% of this target. Within this, specific sub-targets are allocated, including 14% for non-corporate farmers and 10% specifically for small and marginal farmers to ensure equitable credit distribution. ## Monitoring and Penalties Banks are required to submit quarterly compliance data within 15 days of each quarter-end. Institutions failing to meet their mandated PSL targets may be directed to contribute to specific funds managed by organizations like NABARD, NHB, SIDBI, or MUDRA. This mechanism enforces accountability and ensures credit reaches designated priority areas consistently. ## Incentivizing Regional Lending The framework introduces variable weightages for incremental lending to encourage credit flow in specific districts. Districts with lower priority-sector credit flows receive a 125% weightage, while those with higher flows receive 90%. This strategic approach aims to balance regional development by directing capital toward areas that are currently underserved by commercial banks. ## Broader Sectoral Provisions Beyond agriculture, the draft includes updated limits for other sectors, such as ₹8 crore for schools and sanitation, and ₹12 crore for healthcare facilities in Tier 2 to Tier 6 centers. Renewable energy projects can qualify for loans up to ₹35 crore, reflecting the central bank's commitment to diverse socio-economic infrastructure. ## Public Consultation Period The draft directions are currently open for public feedback until November 26. Stakeholders, including commercial banks and industry representatives, are invited to review the proposals and submit comments. This consultative process is essential for refining the final policy before it is implemented to govern future bank lending practices across India. ## Sources covering this story - https://www.livemint.com/industry/agriculture/rbi-proposes-100-crore-priority-sector-lending-limit-for-agri-infra-loans-11793892601351.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._