Public ID: PID-GXRMKG
Banks required to lend to priority industry sectors impacting UK financial services in India
Trade barrier summary
This affects UK businesses in the financial sector working with India. International banks with over 20 branches are required to lend 40% to 'priority industry sectors' stipulated in India. These include sectors such as agriculture and micro, small and medium-sized enterprises (MSMEs), which are harder to reach from bank's urban locations. International banks must purchase priority sector lending certificates to make up for any shortfall in lending which is an additional cost.
- Financial and professional services
7 January 2020
7 December 2021