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- The Ministry of new and renewable energy(MNRE) has decided to ask the Reserve Bank of India(RBI) for removal of the priority sector lending limit for the renewable energy(RE) sector.
- This will encourage the PSBs(public sector banks) to lend more for renewable energy projects and help RE developers access easy finance.
- India is running the world’s largest renewable energy programme and plans to achieve 175 gigawatts(GW) of renewable energy capacity by 2022 as part of its climate commitments.
- Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors.
- Priority Sector includes the following categories:(a) Agriculture (b)Micro, Small and Medium Enterprises (c) Export Credit (d) Education (e) Housing (f) Social Infrastructure (g)Renewable Energy and (h)Others.
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