Reserve Bank of India (RBI) has updated guidelines on Priority Sector Lending Certificates (PSLCs), as outlined in its circular dated March 24, 2025. Referring to a 2016 circular, the RBI clarified the classification of PSLCs under the category “PSLC – SF/MF.” This category now includes all eligible loans to small and marginal farmers and will count toward multiple sub-targets, including the SF/MF sub-target, Weaker Sections sub-target, Non-Corporate Farmers (NCF) sub-target, agriculture target, and overall Priority Sector Lending (PSL) target. Other provisions of the original circular remain unchanged. This update aims to streamline PSL compliance and ensure broader coverage of lending to small and marginal farmers. The revised classification affects Scheduled Commercial Banks, Regional Rural Banks, Primary (Urban) Co-operative Banks, and Local Area Banks.
RESERVE BANK OF INDIA
RBI/2024-25/131
FIDD.CO.PSD.BC.No.12/04.09.001/2024-25 Dated: March 24, 2025
The Chairman / Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks
(including Regional Rural Banks)/ Primary (Urban) Co-operative Banks/ Local Area
Banks]
Madam/ Dear Sir,
Priority Sector Lending Certificates
Please refer to para (v) of the Annex to circular RBI/2015-16/366/ FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 07, 2016 on the captioned subject.
2. The item at serial no. 2 of the table in the above para may be read as follows:
| S. No. | Type of PSLCs | Representing | Counting for |
| 2. | PSLC – SF/MF | All eligible loans to small/ marginal farmers |
Achievement of SF/MF sub-target, Weaker Sections sub-target, NCF sub- target, agriculture target and overall PSL target |
3. Other contents of the circular shall remain the same.
Yours faithfully,
(Nisha Nambiar)
Chief General Manager-in-Charge
