that`s another way of RBI indicating stop lending to big houses where inflation expectations could dampen their debt pay back.

Nothing new in the policy.policy itself does not bring change.Zeal and a motto on the part of bankers to lift the weak borrowers is the requirement of the day which is really absent in view of the tremendous pressure on them to meet the targets without providing sufficient workforce in the banks and also too much of documentation.

this will definitely help the banks

Because banks are not willing to enter into rural sector and also unwilling to advance small loans to small borrowers due to increased internal workload and instead try to advance bulk sums to big borrowers since it involves less documentation and workload. Hence it is their strategy which is a hurdle in meeting their priority sector norms and not the policy of RBI.

Priority sector norms were prescribed to ensure proper (minimum of 40%of total advances/loans) credit flow to the sectors like agriculture, eduction, retail trade, small business, SSI and Small Road transport Operators. It is certainly needs to update, change the limits, add or delete certain sectors basing on the economic conditions. But for statiscal reasons, if we eases the norms , the purpose will not be served. Ultimately , the basic purpose for which these sectors are identified should not be defeated.

no banks, especially private banks of Bombay are interested to swell their kitty. rbi is a dumb entity does not do the right central banker job.

Yes, such decisions by the Central Bank and the Govt will go a long way in boosting the growth and making funds available for priority sectors.

Helps today to enlarge credit portfolio but make life misarable tomorrow for recovery of NPA

no, first make system corruption free , just sitting in AC rooms & making planning/guidelines are worth less

We hope that the govt will not force the banks to give loans which are destined to go bad like KFA. T o achieve the so called lending targets, banks start giving uncalled for loans. Instead of lending targets, there should be lending limits.
If throwing away money could bring development, India would have become a developed country long back.

Some Bank,s are not deliberately meeting the targets in priority sector,it is only met when Govt give stress for meeting the targets by the banks

yes, but only hurdle will be if the banks dont take due diligence and increase their NPA.

RBI eases priority sector norms for banks. Will this move help banks to meet priority sector lending target?

Will this move help banks to meet priority sector lending target?