Reserve Bank of India's commitment to lending to priority sectors is accelerating as PSL certificate deals gain momentum above Rs. 600 million rupees. This will open up new possibilities for lending to rural households and his MSMEs through NBFCs and housing finance companies. According to RBI data, the total trading volume of Preferred Sector Lending Certificates (PSLCs) registered a growth of 12.4%, reaching Rs 6.62 crore at the end of March 2022. Weighted average premiums also increased across all PSLC categories, with small and subsistence farmers certificates claiming the highest premiums. According to central bank data, outstanding balances in the elderly sector increased by 12.3% in 2022. "Although all banking groups were able to meet their lending targets in their priority sectors, foreign banks and microfinance banks also achieved their targets in all sectors"
