July 28, 2016
The Chairman/ Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks
Dear Sir/ Madam,
Priority Sector Lending –Targets and Classification- Bank loans to MFIs for on-lending – Qualifying asset – Revised loan limit
Please refer to paragraph 19 (b) (iv) of the Master Direction on Priority Sector Lending – Targets and Classification FIDD.CO.Plan.No.1/04.09.001/2016-17 dated July 7, 2016.
2. The limit of the loans extended by Non-Banking Financial Company- Micro Finance Institutions (NBFC-MFIs) for which the tenure of the loan shall not be less than 24 months, has been raised to ₹ 30,000/- from the earlier limit of ₹ 15,000/-.
3. Accordingly, paragraph 19 (b) (iv) of the above Master Direction stands modified as follows:
“Tenure of loan is not less than 24 months when loan amount exceeds ₹ 30,000/- with right to borrower of prepayment without penalty.”
Principal Chief General Manager