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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI Expands Exemptions Under Large Exposures Framework for Priority Sector Lending Shortfalls

09-Jun-2025 | RBI/2025-26/48 DOR.CRE.REC.27/21.01.003/2025-26

Reserve Bank of India (RBI) issued a notification expanding the scope of exemptions under its Large Exposures Framework (LEF). According to the notification, RBI modifies paragraph 3.1 of the LEF to broaden the scope of entities for which exposures can be excluded from the LEF limits. Large Exposures Framework (LEF) in terms of which deposits maintained with NABARD on account of shortfall in achievement of targets for priority sector lending are excluded from being considered for exposure limits under LEF. It is advised that in addition to NABARD, the above exemption shall also be applicable to contributions made by the scheduled commercial banks to funds with NHB, SIDBI, MUDRA Ltd., or any other entity specified by the RBI, on account of a shortfall in the achievement of targets for priority sector lending.

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