RBI revises priority sector lending norms

The Reserve Bank has tweaked priority sector eligibility and classification norms following an announcement in the second bi-monthly policy statement. It said that with a view to bringing convergence of the Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme, and to give a flip to low-cost housing for the Economically Weaker Sections and Low Income Groups, the housing loan limits for eligibility under priority sector lending will be revise d to Rs 35 lakh in metropolitan centres Rs 28 lakh earlier (with population of ten lakh and above), and to Rs 25 lakh from Rs 20 lakh earlier in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively. The existing limit for family income of Rs 2 lakh per annum for loans to housing projects for home construction economically weaker sections and low income groups, is revised to Rs 3 lakh per annum and Rs 6 lakh per annum respectively in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana, RBI said.