RBI, foreign banks clash on priority lending norm

.....Foreign banks are not willing to accept the new norm, which will only come into effect in August 2018, as they say profitability will be eroded. Under RBI rules, any bank that fails to fulfil the priority loan norm is required to keep money with the National Bank for Agriculture and Rural Development (Nabard) for rural infrastructure development. Earnings on this are much lower than what a bank will get from giving loans.......

 

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