RBI revises priority sector norms to include NCDC

MUMBAI: RBI has revised its priority sector lending norms allowing lending to the National Cooperative Development Corporation to qualify as priority sector loans, with the objective of expanding credit to cooperative societies while tightening compliance and reporting requirements for banks. The move is expected to open new channels of credit for cooperatives, particularly those engaged in agriculture and allied activities. At the same time, the central bank tightened compliance norms to prevent double counting of priority sector benefits. TNN