The Reserve Bank of India (RBI) has increased the priority sector lending target for foreign banks with 20 branches or more to 40 percent from 32 percent in a phased manner over a maximum period of five years starting April 1, 2013.
In a revised guidelines on priority sector lending issued on Friday, the central bank said these lenders would have to submit an action plan for achieving the target over a specific time frame to be approved by the RBI. State-run banks already have a priority sector lending target of 40 percent.