While Domestic Commercial Banks and Foreign Banks (20+ branches) have a target of 40% of ANBC, RRBs and SFBs have a higher mandatory target of 75% of ANBC to ensure credit flow to underserved sectors.

"Weaker Sections" include small/marginal farmers, SC/STs, SHGs, distressed farmers, and artisans. Medium Enterprises are part of the MSME category but not the "Weaker Sections" sub-target.

For Metros (population >= 10 lakh), the housing loan limit for PSL is ?35 Lakh (provided the total cost of the dwelling unit does not exceed ?45 Lakh). For other centers, the loan limit is ?25 Lakh.

Loans to individuals for educational purposes, including vocational courses, not exceeding ?20 lakh will be considered as eligible for priority sector classification.

ANBC is defined as Net Bank Credit (NBC) plus investments made by banks in non-SLR bonds held in the HTM category, plus other investments eligible to be treated as priority sector. This ensures that banks don't shift assets to investments to lower their lending targets.

Loans up to ?5 crore per borrower for setting up schools, drinking water facilities, and sanitation facilities in Tier II to Tier VI centers are classified as Priority Sector Lending.

For Domestic Banks, "Export Credit" is allowed as PSL only up to 2% of ANBC or CEOBE (Credit Equivalent of Off-Balance Sheet Exposure), whichever is higher. This is much lower than the limit for Foreign Banks.

Under Priority Sector norms, loans for agriculture infrastructure (warehousing, market yards, cold chains) are capped at ?100 crore per borrower from the banking system.

Bank loans up to ?50 crore to Startups (as per definition of Ministry of Commerce and Industry) are eligible for finance under the priority sector.

In "With Recourse" factoring, the factor advances money against invoices but does not indemnify the seller against bad debts. If the customer fails to pay, the factor reclaims the advance from the seller.

Previously, there were expense ceilings. Currently, under PSL norms, there is no cap on the total cost of education. Only the loan amount eligible for PSL classification is capped at ?20 Lakh.

Foreign banks with less than 20 branches have a total target of 40% of ANBC, but they are exempted from specific sub-targets for Agriculture and Weaker Sections. They can achieve their target largely through Export Credit.

To promote affordable housing, RBI allows an LTV ratio of up to 90% for loans up to ?30 Lakh. For loans between ?30L-?75L, it is 80%.

Bank credit to NBFCs (excluding MFIs) for on-lending is allowed under PSL up to an overall cap of 5% of the individual bank's total priority sector lending.

Loans up to ?30 crore to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, micro-hydel plants, etc., are eligible for PSL.

PSLCs are valid only for the financial year in which they are traded. Their validity expires on March 31st, and banks must buy fresh certificates for the next year if shortfalls persist.

Priority Sector includes Agriculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others (Weaker Sections). CSR loans to corporates are not part of this.

ACABC loans are classified under Ancillary Activities within the Agriculture sector, as they provide professional extension services to farmers.

While the limit for firms/borrowers is ?30 Crore, for individual households , the loan limit for renewable energy purposes is capped at ?10 Lakh per borrower.