December 21, 2025 01:30 pm (IST)
Follow us:
PSLC instructions from RBI boost banking stocks on Friday morning
Mumbai, Apr 8 (IBNS) Several bank stocks gained on Friday following the release of instructions on trading in Priority Sector Lending Certificates (PSLCs) by the Reserve Bank of India (RBI) on Thursday, according to reports.
While releasing the instructions on trading in PSLCs on Thursday, Deputy Governor, RBI, S. S. Mundra, also launched a platform to enable trading in the certificates through its Core Banking Solution (CBS) portal (e-Kuber).
All Scheduled Commercial Banks (including Regional Rural Banks), Urban Co-operative Banks, Small Finance Banks (when they become operational) and Local Area Banks are eligible to participate in the trading.
Four kinds of PSLCs, namely, PSLC - Agriculture, PSLC – Small & Marginal Farmers, PSLC – Micro Enterprises and PSLC - General can be bought and sold via the platform.
The certificates will have a standard lot size of ₹25 lakh and multiples thereof. There will be no transfer of credit risk on the underlying and the settlement of funds will be done through the e-Kuber portal. The detailed user guidelines for trading on the platform are also available on the portal.
The RBI had comprehensively revised the priority sector guidelines in April 2015, which provided for the introduction of PSLCs as a mechanism to incentivise banks having surplus in their lending to different categories of priority sector.
On the lines of carbon credit trading, the goal of PSLCs is to allow market mechanism to drive priority sector lending by leveraging the comparative strength of different banks. For instance, a bank with an expertise in lending to small farmers can over perform there and get benefit by selling its over performance through PSLCs. Another bank that is better at lending to small industry can buy these certificates while selling PSLCs for micro enterprise loans.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Bengali singer Lagnajita Chakraborty alleges abuse, assault bid on stage, police arrest accused
Sun, Dec 21 2025
Telangana to bring Karnataka-style hate speech law amid rising debate on communal rhetoric
Sat, Dec 20 2025
Fog can’t silence Modi: PM slams ‘cut and commission’ TMC in virtual Taherpur address
Sat, Dec 20 2025
PM Modi’s Nadia rally in Bengal delayed as helicopter fails to land due to dense fog
Sat, Dec 20 2025
Horror on tracks: Rajdhani Express ploughs into elephant herd, eight killed in Assam
Sat, Dec 20 2025
Viral video of foreign tourists exploring New Delhi with a local auto rickshaw driver steals hearts!
Fri, Dec 19 2025
Why India remains unaffected as Trump suspends US Green Card lottery? Find out here
Fri, Dec 19 2025
Goa's popular Curlie's pub sealed days after nightclub fire tragedy
Fri, Dec 19 2025