RBI new rules on Priority Sector Lending, Some advances excluded from ANBC

The RBI has released some new rules for priority sector lending. Some advances have been removed from ANBC.

Adjusted Net Bank Credit (ANBC) is the Net Bank Credit (NBC) adjusted for certain items as prescribed by the RBI. It is used as a base for calculating banks’ Priority Sector Lending (PSL) targets. In simple terms, ANBC represents the bank’s eligible net credit after making the adjustments specified by the RBI, and the prescribed percentage of ANBC is used to determine the amount a bank should lend to priority sectors.

RBI has decided that the following advances extended in India will be excluded from calculation of Adjusted Net Bank Credit (ANBC):

a) advances against the fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilised (including deposits that are renewed upon maturity) by the banks between June 08, 2026 and September 30, 2026, and

b) advances against NRE term deposits of three years or more mobilised (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026.

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