Steer · Directed credit
Mandatory priority-sector lending quotas
- What it is
- Require banks to allocate a minimum share of credit to named sectors or borrower classes, with subquotas for agriculture, small enterprises, housing or disadvantaged borrowers.
- Why it counts
- Administrative allocation replaces part of market-based credit selection and shifts financing costs or risks onto banks and potentially depositors.
When it was in force
- India: 2025 → now, in force; the rule may be older than the cited document
Example
India
2025 → nowIn forceThe rule may be older than the cited document · As cited: 2025-present directions; earlier quota regimes
Domestic commercial banks generally face a 40 percent overall priority-sector requirement with sectoral subtargets.
India today: index 60.6RBI (Priority Sector Lending – Targets and Classification) Directions 2025, paragraph 7Primary source
“40 per cent of ANBC as computed in para 6 above or CEOBSE, whichever is higher.”
Examples and their dates reviewed .