Reserve Bank of India proposes consolidated priority sector lending draft directions
What happened
The Reserve Bank of India has released five draft directions for public consultation to consolidate guidelines on priority sector lending. The proposals cover commercial banks, small finance banks, local area banks, regional rural banks, and urban co-operative banks.
Why it matters
Regulated entities must evaluate the draft rules, as the final version will trigger the repeal of all existing instructions not specifically included in the new consolidated framework. Stakeholders should review the impact of these changes on their specific lending requirements.
Bigger picture
This initiative is part of the central bank's ongoing regulatory consolidation project, which aims to streamline and simplify disparate instructions issued over time across different banking categories.
Watch next
Stakeholders must submit feedback by November 26, 2026, via the RBI's 'Connect 2 Regulate' portal or by email.