RBI on June 8, 2023 has intimated Primary (Urban) Co-operative Banks(UCB) other than Salary Earners’ Banks that the due date for achieving overall Priority Sector Lending (PSL) target and sub-target for advances to weaker sections is extended for an additional 2 years.
In view of the implementation, it has been decided that:
- UCBs would not be required to contribute to RIDF or other eligible funds for shortfall in PSL target/ sub-targets during Financial Year (FY) 2020-21 and FY 2021-22.
- UCBs shall contribute to RIDF and other eligible funds against their shortfall in PSL target/ sub-targets vis-à-vis the prescribed targets with effect from March 31, 2023.
- Also, in case contribution has been made by any UCB towards the above PSL shortfall during the FY 2020-21 and/ or FY 2021-22, that contribution can be used to offset any shortfall that may have occurred during FY 2022-23. Excess deposit, if any, after offsetting the PSL shortfall during FY 2022-23 will be refunded.
