The Reserve Bank plans to include export finance under priority sector lending category, with certain riders, Deputy Governor H R Khan said here today.
He said that a specially constituted internal group is working on this aspect and its inclusion would be over and above benefits granted to financing Micro, Small and Medium Enterprises (MSMEs).
A decision on this aspect is expected in the final report, which is scheduled to be submitted in two months.
"One of the suggestions which this group is looking at now is whether up to a particular level of export advance limit, and linked with some turnover of that party, whether there can be incremental amount which can be computed for the purpose of priority sector lending," Khan said
He was speaking at an interactive meeting with exporters on the sidelines of the final day of the Vibrant Gujarat Summit here.
Khan said this is a re-alignment exercise within the overall priority sector lending limit, which now stands at 40 per cent.
Under priority sector lending, lenders have to devote 40 per cent of their overall credit to help prop up sectors like agriculture and small scale sector.
At a bankers' meet earlier this month in Pune, it was decided to review priority sector lending targets since the needs and requirements of the economy have changed with time.
The RBI had constituted an internal working group to suggest changes in priority sector lending norms much earlier.
"Internally, we are discussing with stakeholders. We will also discuss with the government and come out with our guidelines on including to what extent and what form exports will find place in the new priority sector lending guidelines," Khan said.
