New institutions: As you are aware, two new universal banks have started operations while in-principle approval has been granted to 10 entities to set up Small Finance Banks that would primarily focus on lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganized sector entities.
These small finance banks have been mandated to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank. At least 50 per cent of its loan portfolio should constitute loans and advances of up to Rs. 25 lakh.