Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: October 12, 20212021-10-12T21:21:19+05:30 2021-10-12T21:21:19+05:30In: Economics What is Priority Sector Lending? What is RBI to brought startups under Priority Sector Lending (PSL)? bankingcurrent affairs Share Facebook 1 Answer Recent Sagar 31 Questions 177 Answers 34 Best Answers 572 Points View Profile Sagar 2021-10-14T03:25:37+05:30Added an answer on October 14, 2021 at 3:25 am Context: The Reserve Bank of India (RBI) brought startups under the purview of Priority Sector Lending (PSL), a move that will make it easier for startups to raise funds from banks. Priority Sector Lending The RBI mandates banks to lend a certain portion of their funds to specified sectors– agriculture, micro, small and medium enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy, and others. The idea behind this is to ensure that adequate institutional credit reaches some of the rather vulnerable sectors of the economy, which otherwise may not be attractive for banks from the profitability point of view. Sectors under PSL Agriculture Micro, Small and Medium Enterprises (MSMEs) Export Credit Education Housing Social Infrastructure Renewable Energy Weaker Sections Others: Startup, SHG, etc. Startups Startups are companies or ventures that are focused on a single product or service that the founders want to bring to market. These companies typically don’t have a fully developed business model and, more importantly, lack adequate capital to move on to the next phase of business. Most of these companies are initially funded by their founders. Startups were considered under the MSME category and were required to show three years of profitability. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Pathalgadi? What is Bodo Accord?
The Reserve Bank of India (RBI) brought startups under the purview of Priority Sector Lending (PSL), a move that will make it easier for startups to raise funds from banks.
Priority Sector Lending
Sectors under PSL