India's central bank cuts small finance banks' lending requirement to priority sectors

Equitas Small Finance Bank

20/06/2025 15:45

June 20 (Reuters) - India's central bank on Friday reduced the mandated portion of lending that small finance banks have to extend to priority sectors such as agriculture and small businesses, lowering it by 15 percentage points.

     Small finance banks currently have to extend 75% of their loans to priority sectors. After a review, the Reserve Bank of India has effectively cut the requirement to 60% of total lending.

 (Reporting by Manvi Pant in Bengaluru; Editing by Vijay Kishore)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))