Priority sector credit rules for large foreign banks, too

....In the draft norms, the banking regulator had said these loans would be classified under the priority sector up to a maximum of five per cent of adjusted net bank credit or credit equivalent of off-balance sheet exposure, whichever was higher. In today’s revised guidelines, RBI removed this cap and said “investments by banks in securitised assets, outright purchases of loans and assignments to be eligible for classification under priority sector, provided the underlying assets qualify for priority sector treatment and the interest rate charged to the ultimate borrower by the originating entity does not exceed the base rate of such bank plus eight per cent per annum.”.

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