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RBI Issues Second Amendment Directions for Priority Sector Lending
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RBI Issues Second Amendment Directions for Priority Sector Lending

August 16, 2026

The Reserve Bank of India has issued the Second Amendment Directions for Priority Sector Lending, introducing targets and classification updates. These changes aim to streamline and enhance the efficiency of lending practices within the priority sector.

Second Amendment Directions for Priority Sector Lending

On August 7, 2026, the Reserve Bank of India (RBI) issued the Second Amendment Directions pertaining to the classification and targets for Priority Sector Lending (PSL). This amendment is part of RBI's ongoing efforts to ensure that financial support reaches critical sectors that contribute to the economy.

According to the latest changes, the RBI has defined specific targets for various segments within the priority sector. Such sectors include agriculture, micro, small, and medium enterprises, education, housing, and others. The RBI emphasizes that these updated classifications will facilitate improved access to credit for underserved regions and communities.

“This directive aims to enhance the flow of credit towards priority sectors while maintaining financial stability within the banking system,

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