ADVERTISEMENT

RBI plans to set Innovation Hub to promote innovation in fintech
R

RBI governor Shaktikanta Das said that RBI would be bringing startups under its priority sector lending (PSL) that will make the lending process smoother for startups.

The Reserve Bank of India has recently announced that it will be setting up an Innovation Hub to promote innovation in the fintech sector. RBI governor Shaktikanta Das said that RBI would be bringing startups under its priority sector lending (PSL) that will make the lending process smoother for startups.

The Reserve Bank of India stated that the PSL guidelines had been reviewed with a view to aligning the guidelines with emerging national priorities and bring a sharper focus on inclusive development.

Under this development, banks would be required to assign 40% of the adjusted net bank or credit equivalent amount of unbalance sheet exposure, whichever one is higher the priority sector. 

Supporting the startup ecosystem

Presently, RBI has got agriculture, MSMEs, education, housing, social infrastructure, etc. under the umbrella of priority sector lending.

As reported by Outlook India (1), it has also been decided to include “start-ups; increasing the limits for renewable energy, including solar power & compressed biogas plants; and, increasing the targets for lending to ”Small and Marginal Farmers” and ”Weaker Sections” by the RBI. 

Renewable energy sectors that include solar power & compressed biogas plants were already eligible for priority lending, but with the current revisions, the cap of borrowing has also been raised.

The latest development comes as a relief for the Indian startup ecosystem that has been struggling due to loss of revenue during the pandemic. With this, even investors have become very picky about which startup to invest in.

+ posts

A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

Note: If you buy something via a link on this page, we might earn a small commission on it.

Saumya Uniyal
Saumya Uniyal
A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Leave A Reply

Please enter your comment!
Please enter your name here

ADVERTISEMENT

related stories

MPL

MPL Bags 90 Million USD in Series C Funding Round

0
Mobile Premier League (MPL) (1) has secured 90 million USD in the latest fundraising led by SIG, RTP Global, and MDI Ventures. Other existing...
Thiruttuvcd

Thiruttuvcd 2020- Illegal movies download website

0
INDEX: What is Thiruttuvcd? History How does it work? Features of Thiruttuvcd Alternatives Legality and accessibility   What is Thiruttuvcd? Everyone likes to enjoy a movie or...

How Acko became India’s leading online insurance company

0
All about Acko Insurance, no matter what kind, gives us the sense of being safe and secure in life. We all know that insurance protection...
FPIs

Indian Market Remains Attractive to Overseas Investors

0
The Foreign Portfolio Investors (FPI) have purchase equities worth of 1,766 crore INR and infused 2,178 crore INR in the debt segment between 1...
gold deposit

Earn Money From Your Gold While Keeping it Safe in Banks

0
Indians are good at saving gold, as it is an integral part of our culture. Gold also provides financial security. It's the only property...
Drivezy

Drivezy to Secure 30 Million USD in Funding Round

0
Drivezy (1) is in talks with an undisclosed Middle East sovereign funds and Shell Ventures. As the reports suggest, the deal is in the...
PlayStation 5

PlayStation 5- Design, Specifications, and Release date

0
INDEX: Introduction Specifications and features of the PlayStation 5 Design of the PlayStation 5 Estimated price and Release date FAQ   Introduction: We all know that gaming...
Classplus

Classplus Secures 10M USD From Alpha Wave Incubation

0
The Delhi NCR-based startup, Classplus have increased its valuation by 83% with the latest tranche. It is the second investment of the company in...