The highest authority Bank of India- Reserve Bank of India has included positive aspects for helping new startups to grow. The Reserve Bank of India has assigned Priority Sector Landing status to India’s startup sectors. This is a really very helpful gesture for all the startups that are struggling to receive adequate capitals and investments. Thousands of small startups will enjoy benefits from this assigned Priority Sector Landing Status.
Under this new Priority sector Lending, banks have to set aside a specific portion of bank lending to sectors deemed important by the central banks. Till now the Priority Sector Lending was confined only to some reserved sectors such as medium enterprises (MSMEs), agriculture, education and housing but now it has opened the doors for every startup that is the future of Indian generation and in coming times will be serving as the foundation of Indian economy.
Now as per the new inclination in the Priority Sector Lending, every bank that comes under Indian Jurisdiction is committed to set aside 40% of their Adjusted Net Bank Credit for lending these sectors.
This inclination towards startups comes after our respected Prime Minister’s concept of becoming Aatmanirbhar to make India more develop and to ends its dependence on foreign countries. This concept is very much liked and appreciated by people in the country and that is the reason that policies, rules, banks and businesses are including and trying their best to adhere to the guidelines of becoming aatmanirbhar proposed by the Government of India.
“With a view to aligning the guidelines with emerging national priorities and bring a sharper focus on inclusive development, the Priority Sector Lending (PSL) guidelines have been reviewed, PSL status is also being given to startups; and the limits for renewable energy, including solar power and compressed bio-gas plants, are being increased,” said Shaktikanta Das while addressing Monetary Policy speech on last Thursday.
This move of RBI will help the small sectors to move ahead and has tried to decrease the issues of capitals and investment which earlier used to become one of the greatest blockages on their way to success.