Reserve Bank of India (RBI) has revised the Priority Sector Lending (PSL) target for Primary (Urban) Co-operative Banks (UCBs), excluding Salary Earners’ Banks. As per the new directive issued on March 24, 2025, the overall PSL target for UCBs has been reduced to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBSE), whichever is higher, effective from FY 2024-25 onwards. This supersedes the earlier target of 75% by FY 2025-26, which was to be achieved through interim targets of 60% (FY 2023-24) and 65% (FY 2024-25). Other provisions outlined in the previous circular issued on June 8, 2023, remain unchanged. This revision aims to ease compliance requirements for UCBs while maintaining credit flow to priority sectors. The new circular also overrides relevant provisions of previous RBI circulars issued in 2020 and 2023 regarding PSL targets and exposure limits for UCBs.
Reserve Bank of India
RBI/2024-25/130
DOR.CRE.REC.69/07.10.002/2024-25
March 24, 2025
Primary (Urban) Co-operative Banks other than Salary Earners’ Banks
Madam / Dear Sir,
Review of Priority Sector Lending (PSL) Target – Urban Co-operative Banks (UCBs)
In terms of paragraph 3 of the circular DOR (PCB).BPD. Cir No.10/13.05.000/2019-20 dated March 13, 2020, read with paragraph 2 of the circular DOR.CRE.REC.18/07.10.002/2023-24 dated June 8, 2023, UCBs are required to achieve an overall PSL target of 75 per cent of ANBC1 or CEOBSE2, whichever is higher, by FY2025-26, with interim targets of 60 per cent (FY2023-24) and 65 per cent (FY2024-25).
2. On a review, it has been decided that the overall PSL target for UCBs shall stand revised, FY2024-25 onwards, to 60 per cent of ANBC or CEOBSE, whichever is higher. The other provisions contained in the circular DOR.CRE.REC.18/07.10.002/2023-24 dated June 8, 2023, shall remain unchanged.
3. Instructions contained in this circular supersede the extant relevant instructions as given in Annex to this circular.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
Annex – Specific paragraphs of certain circulars that stand superseded
| Sr. No. | Circular | Date of Issue | Subject |
| 1. | Provisions relating to overall PSL target contained in paragraph 2 of the circular DOR.CRE.REC.18/07.10.002/2023-24 | June 8, 2023 | Priority Sector Lending (PSL) targets / sub-targets and contribution against shortfall in achievement of PSL targets – Primary (Urban) Co-operative Banks (UCBs) – Extension of time |
| 2. | Provisions relating to overall PSL target contained in paragraph 3 of the circular DOR (PCB).BPD.Cir No.10/13.05.000/2019-20 | March 13, 2020 | Limits on exposure to single and group borrowers/parties and large exposures and Revision in the target for priority sector lending – UCBs. |
1 Adjusted Net Bank Credit.
2 Credit Equivalent Amount of Off-balance Sheet Exposure.
