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
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.