Maharashtra launches Annual Priority Sector Credit Plan

June 7, 2021

Maharashtra launched ‘state annual priority sector credit plan’ worth Rs 4,60,881 crore along with an ‘overall annual credit plan’ worth 18,10,779 crore.

Highlights

It was launched during quarterly State Level Bankers Committee (SBLC) meeting of Maharashtra.
State government has set annual credit lending target of Rs 1.19 lakh crore for agriculture sector by banks for financial year 2021-2022.
Out of this, Rs 60,860 crore was set for crop loans during kharif and rabi seasons.
Banks have also disbursed crop loans worth Rs 47,972 crores for this financial year.
Government asked banks in state to continue more finance under crop loan disbursement for kharif 2021 season and to achieve season targets by end of June 2021.
Banks have also been advised to improve credit disbursal under agriculture sector and support all government-sponsored schemes & SHGs.

Priority Sector Lending

Priority Sector Lending is decided as per RBI guidelines. Under it, RBI mandates banks to lend certain amount from their funds to specified sectors such as agriculture; Micro, Small & Medium Enterprises (MSMEs); education, export credit, renewable energy, housing and social infrastructure. All scheduled commercial banks and foreign banks are mandated to keep 40% of their Adjusted Net Bank Credit (ANDC) to lend these sectors. Regional rural banks, co-operative banks and small finance banks can allocate 75% of ANDC. Lending is facilitated to ensure that, adequate institutional credit reaches vulnerable sectors of economy.

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