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- The Reserve Bank of India has decided to increase the housing loan limits for Regional Rural Banks(RRBs) and Small Finance Banks(SFBs). Further,all such loans will be classified by these banks as priority sector loans.
- The eligibility cap has been increased to ₹35 lakh in metropolitan areas and ₹25 lakh in other centres provided the overall cost of the dwelling unit in the metropolitan centres and other centres does not exceed ₹45 lakh and ₹30 lakh respectively.
- 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.
- Regional Rural Banks(RRBs) are Indian Scheduled Commercial Banks operating at regional level in different States of India.They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.However,RRBs may have branches set up for urban operations and their area of operation may include urban areas too.
- Small finance banks are a type of niche banks in India.Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending.The aim is to provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities.



