RBI eases loan norms for small finance banks

MUMBAI: RBI has eased lending rules for small finance banks ( SFBs ), allowing them to reduce the share of loans they must give to small loans seekers in priority sectors. Until now, SFBs were required to give 75% of their total loans to these sectors. From this financial year , that requirement has been cut to 60%. Of this, 40% must still go to key target groups identified by RBI. But for the remaining 20%, SFBs can now choose which priority areas to focus on.