Current · Source: Reserve Bank of India · RBI/2024-25/131 · issued 24 Mar 2025 · ~1 min read
Quick answerRBI has expanded the counting of PSLC-SF/MF certificates: they now simultaneously count toward the SF/MF sub-target, Weaker Sections sub-target, NCF sub-target, agriculture target, and overall PSL target, replacing the earlier narrower counting rule.
The rule, in the simplest words
PSLC‑SF/MF certificates (special papers for small‑business and weaker‑section loans) now count for five priority‑sector targets at the same time: SF/MF, Weaker Sections, NCF, agriculture and the overall PSL goal.
Because one certificate can satisfy all those targets, banks no longer need separate certificates for each sub‑target, which can cut the cost of meeting the targets.
All banks must change their internal PSL tracking systems and tell treasury and compliance teams to use the new counting rule from the effective date.
How it plays out — a real example
Rohit, a priority‑sector lending officer in Mumbai, reviews the bank’s PSLC‑SF/MF holdings and records each certificate once, noting that it now fulfills the agriculture, weaker‑sections, NCF, SF/MF and overall PSL targets, making his daily compliance work simpler and faster.
What changed
The table entry for PSLC-SF/MF (serial no. 2) has been revised. Earlier, these certificates counted only for specific sub-targets; now they count for all five listed targets simultaneously. The rest of the circular remains unchanged.
What it means for you
Banks can now use PSLC-SF/MF purchases to meet multiple priority sector obligations at once, reducing the need for separate certificates for each sub-target. This simplifies compliance and may lower the cost of meeting SF/MF and Weaker Sections targets. Lenders should update their internal PSL tracking systems to reflect the expanded counting.
What you must do
Update internal PSL reporting systems to reflect that PSLC-SF/MF now counts for SF/MF, Weaker Sections, NCF, agriculture, and overall PSL targets.
Review current PSLC-SF/MF holdings and adjust PSL target achievement strategies accordingly.
Communicate the change to treasury and compliance teams handling PSLC trading and reporting.
Ensure any outstanding PSLC-SF/MF transactions are booked under the revised counting rules from the effective date.
Who it affects
All Scheduled Commercial Banks including RRBs, Primary (Urban) Co-operative Banks, Local Area Banks, Treasury and compliance teams managing PSLCs, PSL reporting and monitoring departments
❓ Common questions
Does this change affect PSLCs other than PSLC-SF/MF?
No, the circular only revises the counting for PSLC-SF/MF. Other PSLC types remain unchanged.
Can PSLC-SF/MF now be used to meet the agriculture target directly?
Yes, as per the revised table, PSLC-SF/MF counts for the agriculture target in addition to other sub-targets.
When does this change take effect?
The circular is dated March 24, 2025. Banks should apply the revised counting from that date onward, unless otherwise specified.
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/131
FIDD.CO.PSD.BC.No.12/04.09.001/2024-25
March 24, 2025
The Chairman / Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks
(including Regional Rural Banks)/ Primary (Urban) Co-operative Banks/ Local Area Banks]
Madam/ Dear Sir,
Priority Sector Lending Certificates
Please refer to para (v) of the Annex to circular RBI/2015-16/366/ FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 07, 2016 on the captioned subject.
2. The item at serial no. 2 of the table in the above para may be read as follows:
S. No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/131 · issued 24 Mar 2025. The plain-English explanation above is BankPulse’s own independent summary.
Update internal PSL reporting systems to reflect that PSLC-SF/MF now counts for SF/MF, Weaker Sections, NCF, agriculture, and overall PSL targets.
📜 Compliance
Review current PSLC-SF/MF holdings and adjust PSL target achievement strategies accordingly.
Communicate the change to treasury and compliance teams handling PSLC trading and reporting.
Ensure any outstanding PSLC-SF/MF transactions are booked under the revised counting rules from the effective date.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All Scheduled Commercial Banks including RRBs, Primary (Urban) Co-operative Banks, Local Area Banks, Treasury and compliance teams managing PSLCs, PSL reporting and monitoring departments), your first concrete step on “PSLC-SF/MF now counts for multiple PSL targets” is: “Update internal PSL reporting systems to reflect that PSLC-SF/MF now counts for SF/MF, Weaker Sections, NCF, agriculture, and overall PSL targets.” (RBI issued this 24 Mar 2025).
Circular: RBI/2024-25/131 -- PSLC-SF/MF now counts for multiple PSL targets
Issued: 24 Mar 2025
Action required: Update internal PSL reporting systems to reflect that PSLC-SF/MF now counts for SF/MF, Weaker Sections, NCF, agriculture, and overall PSL targets.
Action required: Review current PSLC-SF/MF holdings and adjust PSL target achievement strategies accordingly.
Action required: Communicate the change to treasury and compliance teams handling PSLC trading and reporting.
Action required: Ensure any outstanding PSLC-SF/MF transactions are booked under the revised counting rules from the effective date.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12798&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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