New priority sector lending target

In the wake of a monsoon shortfall this year, the RBI has reduced the average system-wide priority sector lending target for banks at 11.57 per cent for FY16 as against the earlier target of 13.5 per cent set in July this year. “It is hereby brought to the notice of all concerned that the applicable system-wide average figures for computing achievements under priority sector lending for the FY 2015-16 is 11.57 per cent,” RBI said on Thursday. The target is system-wide average of the last three years' achievement with regard to overall direct lending to non-corporate farmers. Failure to meet the target attracts penalties for banks.