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RBI grants priority sector lending status to startups

Shortpedia

Content Team
Image Credit: shortpedia

India’s central bank has granted priority sector lending or PSL status to startups, a move that will help emerging companies in different sectors to access bank credit on time. PSL is a tool given by the RBI to banks for providing a specified portion of their lending to a few specific sectors like agriculture and allied activities. Banks have to keep 40% of Adjusted Net Bank Credit towards PSL.