New Delhi, Feb. 11 -- The Reserve Bank of India (RBI) has made a significant change in the rule to treat loans sanctioned by banks to the National Cooperative Development Corporation (NCDC) for on-lending to cooperative societies as priority sector lending (PSL) under respective categories.

The change in rule comes into effect for loans sanctioned by banks from January 19, 2026.

In written reply to a question in Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that the provision applies to all banks except Regional Rural Banks, Urban Cooperative Banks, Small Finance Banks and Local Area Banks, and covers activities specified in the Master Direction on Priority Sector Lending, 2025.

NCDC, a statutory corporation under th...