Chapter – 9 Priority Sector Advances : Origin

• Organized financial sector had very little share in the total rural credit despite government’s repeated emphasis on lending to needy sectors of the economy.

• During the meeting of National Credit Council (established by RBI) held in July 1968 emphasis was laid on role of commercial banks in increasing their involvement in the financing of priority sectors, viz., agriculture and small scale industries (till then not clearly defined).

• Priority sector was later formalized in 1972 (based on the report of the Informal Study Group on Statistics relating to advances to the Priority Sectors constituted by the Reserve Bank in May 1971.

• Based on the report, the Reserve Bank prescribed a modified return for reporting priority sector advances and certain guidelines were issued in this connection indicating the scope of the items to be included under the various categories of priority sector.

• No specific target was fixed in respect of priority sector lending till 1974.

• First time in November 1974, the banks were advised at target of 33.33 percent to be achieved by March 1979.

• In order to boost the rural economy whose share in the economy was over 70 per cent at that point of time, government introduced certain scheme (s) to improve flow of credit to these sectors. One of them was Lead Bank Scheme.


• Lead Bank Scheme is an intensive approach to rural development.

• LBS was introduced in 1969 (12th December) with a concept of area approach.

• In 1967, a Study Group (Gadgil Study Group) established by National Credit Council, formed by the RBI suggested that commercial banks should be made responsible for development of particular district.

• RBI appointed Committee of Bankers (FKF Nariman) in 1969 to study the feasibility of bankers being asked to take responsibility of area development, recommended that all financial institutions be made responsible for developing an area, i.e. district by involving all other banks etc. in the area.

• Such banks which lead other banks in the area development were called Lead Banks.


Important objectives of LBS are:

• To pinpoint places which may be suitable for opening of branches and prepare a phased programme for opening of branches.

• Increase credit facilities in the neglected area and sectors of economy

• Finding out constraints coming in the way of development and propose remedial actions.

• Take up schemes, which can help mobilization of deposits and promote investment by local people.

• Prepare projects / schemes to be financed by banks in the area (district).

• Help in implementation of schemes by coordinating with concerned agencies (government or private).

• Monitor progress and evaluate impact of schemes.


• Bank’s Resources and track record

• Regional Orientation of banks

• Contiguity or cluster approach

• Number of districts in the State and eligible Banks.


• Conduct impressionistic survey of the area.

• Locate Growth Potential Areas.

• Ascertain sectors or pockets that are poorly banked and poorly developed.

• Ascertain credit gaps in the area of operation.

• Liaison with different organizations.

• Formulate feasible, bankable and profitable schemes.

• Prepare District Credit Plan (DCP).

• Ensure that DCP is developed to remove unemployment as well as underemployment in the area of operation and also improve standard of living of people. Element of consumption credit need is also required to be made.


• In March, 1980, it was agreed between Union Finance Minister and the Chief Executive Officers of public sector banks to increase limit of priority sector advances to 40% by March, 1985.

• Subsequently, on the basis of the recommendations of the Working Group on implementation of Priority Sector Lending and the Twenty Point Economic Programme by Banks (Krishnaswamy Committee Report: Chairman: Dr. K. S. Krishnaswamy), all commercial banks were advised to achieve the target of priority sector lending at 40 percent of aggregate bank advances by 1985.

• Sub-targets were also specified for lending to agriculture and the weaker sections within the priority sector.

• Since then, there have been several changes in the scope of priority sector lending and the targets and sub-targets applicable to various bank groups.

• During all these years many changes have been made in the priority sector advances scheme. Further Reserve Bank of India in August 2011 set up a Committee to re-examine the existing classification and suggested revised guidelines with regard to Priority Sector lending, its classification and related issues (Nair Committee Report) (Chairman: M V Nair).


• The revised guidelines are operational with effect from July 20, 2012.Various categories included under priority sector are:

(i) Agriculture – Direct Agriculture and Indirect Agriculture

(ii) Micro and Small Enterprises: manufacturing and service sector

(iii) Education

(iv) Housing

(v) Export Credit

(vi) Others


Direct Agriculture Advances: Production Credit and Investment Credit

Loans to individual farmers, including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers, provided banks maintain disaggregated data on such loans, directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to cocoon stage) are advances covered under direct agriculture. In simple words loans given directly to farmers for productive and investment purposes are called direct agriculture finance.


• Loans given to corporate, farmers’ cooperative societies or firms or State Corporations like State Electricity Board/Corporations, State Rural Development Corporations etc. for onward lending to individual farmers come under the category of indirect finance to agriculture.

• Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi Purpose Societies (LAMPS) for onward lending to member farmers come under this category.


In case of micro and small enterprises, the categorization has been done on the basis of: (i) manufacturing sector, and (ii) service sector. These sectors of the economy have also been divided further into two categories, i.e.

(i) Direct Financing

(ii) Indirect Financing


Manufacturing Enterprises

• The Micro and Small enterprises engaged in the manufacture or production of goods to any industry specified in the first schedule to the Industries (Development and regulation) Act, 1951 and as notified by the Government from time to time. The manufacturing enterprises are defined in terms of investment in plant and machinery.

Loans for food and agro processing

• Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.


• Bank loans up to 5 crore per unit to Micro and Small Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006.

Indirect Finance

• (i) Suppliers of inputs and marketing of outputs of artisans, village and cottage industries.

• (ii) Loans to cooperatives of producers in the decentralized sector viz. village artisans and cottage industries.

• (iii) Loans sanctioned by banks to MFIs for on-lending to MSE sector .

• The limits for investment in plant and machinery/equipment for manufacturing / service enterprise is the basis of classification and inclusion of such advances under priority sector category. The investment limit is given below as per Government of India notification.(as notified by Ministry of Micro Small and Medium Enterprises, vide, S.O.1642(E) dated September 9, 2006)

• Manufacturing Sector:

Investment in Plant & machinery

Micro Enterprises Rupees < 25 lakh
Small Enterprises Rupees 25 lakh to 5 crore

• Service Sector

Micro Enterprises Rupees < 10 lakh
Small Enterprises Rupees 10 lakh to 2 crore


• Loans to individuals for educational purposes including vocational courses up to Rupees 10 lakh for studies in India and Rupees 20 lakh for studies abroad are included in priority sector advances.


(i) Loans to individuals up to 25 lakh in metropolitan centres with population above ten lakh and 15 lakh in other centres for purchase/construction of a dwelling unit per family.

(ii) Loans for repairs to the damaged dwelling units of families up to 2 lakh in rural and semi- urban areas and up to 5 lakh in urban and metropolitan areas.

(iii) Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of 10 lakh per dwelling unit.

(iv) The loans sanctioned by banks for housing projects exclusively for the purpose of construction of houses only to economically weaker sections and low income groups, the total cost of which does not exceed 10 lakh per dwelling unit. For the purpose of identifying the economically weaker sections and low income groups, the family income limit of 1,20,000 per annum, irrespective of the location, is prescribed.

• Bank loans to Housing Finance Companies (HFCs), approved by NHB (National Housing Bank) for their refinance,for on-lending for the purposes of purchase/construction/reconstruction of individual dwelling units, subject to an aggregate loan limit of 10 lakh per borrower.

• The eligibility under priority sector loans to HFCs is restricted to five percent of the individual bank’s total priority sector lending, on an ongoing basis.


• Export Credit extended by foreign banks with less than 20 branches will be reckoned for priority sector target achievement.

• As regards the domestic banks and foreign banks with 20 and above branches, export credit is not a separate category under priority sector.



1. On-lending: Loans sanctioned by banks to eligible intermediaries for onward lending only for creation of priority sector assets. The average maturity of priority sector assets thus created should be coterminous with maturity of the bank loan.

2. Small and Marginal Farmers: Farmers with landholding of up to 1 hectare are considered as Marginal Farmers. Farmers with a landholding of more than 1 hectare but less than 2 hectares are considered as Small Farmers. For the purpose of priority sector loans ‘small and marginal farmers’ include landless agricultural labourers, tenant farmers, oral lessees and share-croppers, whose share of landholding is within above limits prescribed for “Small and Marginal Farmer”.


Bank Credit in India (As prescribed in item No. VI of Form ‘A’ (Special Return as on March 31st) under Section 42 (2) of the RBI Act, 1934. I

Bills Rediscounted with RBI and other approved Financial Institutions II

Net Bank Credit (NBC)* III

(I – II)

* For the purpose of priority sector only. Banks should not deduct / net any amount like provisions, accrued interest, etc. from NBC.

Bonds/debentures in Non-SLR categories under HTM category + other investments eligible to be treated as priority sector. IV

ANBC (Adjusted Net Bank Credit) III+IV

Non-convertible Debentures (or NCDs) :

The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs). Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer. Some debentures have a feature of convertibility into shares after a certain point of time at the discretion of the owner. The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).


Banks are required to comply with the following common guidelines for all categories of advances under the priority sector.

1. Rate of interest

The rates of interest on various categories of priority sector loans will be as per RBI directives issued from time to time.

2. Service charges

No loan related and adhoc service charges/inspection charges should be levied on priority sector loans up to 25,000.

3. Receipt, Sanction/Rejection/Disbursement Register

A register/ electronic record should be maintained by the bank, wherein the date of receipt, sanction /rejection / disbursement with reasons thereof, etc., should be recorded. The register/electronic record should be made available to all inspecting agencies.

4. Issue of Acknowledgement of Loan Applications

Banks should provide acknowledgement for loan applications received under priority sector loans.


Financial Inclusion

The concept of Financial Inclusion has come up in 2008 when a Committee set up by Reserve Bank of India on Financial Inclusion (Dr.C Rangarajan Committee, 2008) put forth the need to include in the ambit of banking facilities/services those people who did not have or could not afford to have access to the financial services. The Committee defined Financial Inclusion as “The process of ensuring access to financial services and timely and adequate credit when needed by vulnerable groups such as weaker sections and low income groups at an affordable cost”.

Causes of Poor Financial Inclusion

There are many factors / causes that hindered the inclusion of poor into the ambit of financial services. Among many two very important are:

1. General mindset of the people that poor are non-bankable and are loss making business activity.

2. In general the systems and procedures of the financial sector were not people friendly. Banks were considered out of reach for poor people and considered an organization of rich, by rich and for rich.

Financial Exclusion

Financial exclusion has been defined as the inability to access necessary financial services in an appropriate form by a section of the population. This includes lack of access to Bank accounts like Credit, Savings, Protection against risk (insurance, pension), Debt assistance, Access to advice or financial literacy, etc.

• Financially excluded persons are landless workers, marginal farmers, oral lessees, slum dwellers mostly in urban areas, migrants, etc.Reasons for Financial Exclusion

• Lack of Regular or substantial income, which makes many people not qualifying for bank loan.

• Financially excluded people are mostly daily wagers. Going to bank means losing a day’s wage, in case loan is not given or asked to come again.

• Hassel – free financial assistance from local money lenders is simpler and easier.

• Most banks needed collateral which discourages poor people to take bank loan.

Innovative Steps taken for Financial Inclusion

• Public Private Partnership initiative for providing access of banking services to people Below Poverty Line (BPL) in India.

• Encouraging and allowing poor people to open at least savings bank account with any balance, called as no frill account.

• In reality it includes loans, insurance services and much more

• Formation of Joint Liability Groups

• Involving NGOs, MFI, Civil Society Organizations etc. as intermediaries for onward banking services.

• These intermediaries are being used as Business Facilitators(BF) or Business Correspondents (BC) by Commercial Banks.

Financial Inclusion – Business Correspondents(BC)

Eligible individuals/entities

The banks may engage the following individuals/entities as BC.

(i) Individuals like:

retired bank employees, teachers, government employees & ex-servicemen
individual owners of kirana / medical /Fair Price shops, individual Public Call Office (PCO) operators,
agents of Small Savings schemes of Government of India/Insurance Companies,
individuals who own Petrol Pumps,
authorized functionaries of well run Self Help Groups (SHGs) which are linked to banks, any other individual including those operating Common Service Centres (CSCs);
(ii) NGOs/ MFIs set up under Societies/ Trust Acts and Section 25 Companies

(iii) Cooperative Societies registered under Mutually Aided Cooperative Societies Acts/ Cooperative Societies Acts of States/Multi State Cooperative Societies Act;

(iv) Post Offices; and

(v) Companies registered under the Indian Companies Act, 1956 with large and widespread retail outlets, excluding Non Banking Financial Companies (NBFCs).

What Business Correspondents can do?

The BC can help the bank in any one more of the following ways. Scope of activities may include:

(i) identification of borrowers;

(ii) collection and preliminary processing of loan applications including verification of primary information/data;

(iii) creating awareness about savings and other products and education and advice on managing money and debt counselling;

(iv) processing and submission of applications to banks;

(v) promoting, nurturing and monitoring of Self Help Groups/ Joint Liability Groups/Credit Groups etc;

(vi) post-sanction monitoring;

(vii) follow-up for recovery,

(viii) disbursal of small value credit,

(ix) recovery of principal / collection of interest

(x) collection of small value deposits

(xi) sale of micro insurance/ mutual fund products/ pension products/ other third party products and

(xii) receipt and delivery of small value remittances/ other payment instruments.

• The activities to be undertaken by the BCs would be within the normal course of the bank’s banking business, but conducted through the BCs at places other than the bank premises/ATMs.

Business Facilitators

• Banks may use intermediaries, such as:

(i) Non-Government Organizations

(ii) Micro Finance Institutions set up under Societies/Trust Acts

(iii) Farmers’ Club

(iv) Cooperative Societies other than Credit Cooperatives

(v) Community based organizations

(vi) IT enabled rural outlets of Corporate entities (Information &Communication Technology (ICT) Solutions)

(vii) Post Office

(viii) Insurance Agents

(ix) Well established and functioned Panchayats

(x) Village Knowledge Centers

(xi) Agri-Clinics /Agri-business centers

(xii) Krishi Vigyan Kendras

(xiii) KVIC (Khadi Village Industries Commission)

(xiv) Individuals

Where individuals are engaged as Business Facilitators, adequate precautions need to be taken and proper due diligence conducted.

What Business Facilitator can do?

• The facilitation services may include:

(i) I dentification of borrowers and fitment of activities;

(ii) collection and preliminary processing of loan applications including verification of primary information/data

(iii) creating awareness about savings and other products and education and advice on managing money and debt counselling

(iv) processing and submission of applications to UCBs

(v) promotion and nurturing Self Help Groups / Joint Liability Groups;

(vi) post-sanction monitoring

(vii) monitoring and handholding of Self Help Groups / Joint Liability Groups / Credit Groups / others; and(viii) follow-up for recovery.



• The Kisan Credit Card has emerged as an innovative credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle-free manner.

• The KCC scheme was started in 1998 and during the last over 13 years of implementation, many impediments were encountered by policy makers, implementing banks and the farmers in the implementation of the scheme.

RBI has issued the following guidelines

• From July 2012, KCC Scheme is being implemented by Commercial Banks, RRBs (Regional Rural Banks), and Cooperatives.

• Implementing banks will have the discretion to adopt the same to suit institution/location specific requirements.

Objectives of KCC

• Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window to the farmers.

• Purposes covered under the scheme are for cultivation and other investment needs as indicated below:

(a) To meet the short term credit requirements for cultivation of crops

(b) Post-harvest expenses

(c) Produce Marketing loan

(d) Consumption requirements of farmer household

(e) Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.

(f) Investment credit requirement for agriculture and allied activities like pump sets, sprayers, dairy animals etc.

Note : The aggregate of components a. to e. above will form the short term credit limit portion and the aggregate of components under f will form the medium / long term credit limit portion.

Who are Eligible Persons ?

(i) All Farmers – Individuals / Joint borrowers who are owner cultivators

(ii) Tenant Farmers, Oral Lessees & Share Croppers

(iii) SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.


Rate of Interest (ROI)

• Rate of Interest will be linked to Base Rate and is left to the discretion of the banks.

Repayment Period

• Each withdrawal under the KCC is 12 months without the need to bring the debit balance in the account to zero at any point of time. No withdrawal in the account should remain outstanding for more than 12 months.

• The term loan component is normally repayable within a period of 5 years depending on the type of activity / investment as per the existing guidelines applicable for investment credit.

• Financing banks at their discretion may provide longer repayment period for term loan depending on the type of investment.

Margin: To be decided by banks.

Security: Security will be applicable as per RBI guidelines prescribed from time to time.

Loan waiver Scheme:

Under the scheme, small and marginal farmers with landholdings of less than two hectares can have their entire outstanding loans, till March 2007, waived. Farmers with holdings of over two hectares will be eligible for a one-time settlement rebate of 25% of their outstanding loans, subject to the condition that the remaining 75% will be paid in three instalments by June 30, 2009. No interest will be charged on the outstanding amount.

India’s ambitious loan waiver scheme for small farmers has been extended by nearly 20%, to more than Rs 71,000 crore from the Rs 60,000 crore. Over 40 million indebted Indian farmers have begun to get some financial relief since the massive loan waiver scheme for small and marginal farmers officially came into effect.


What is Poverty?

Many people have defined poverty differently. Some say poverty is hunger, Poverty is lack of shelter, poverty is poor health due to unhealthy conditions clinic facilities and lack of health clinics etc. Some people are of the view that having not enough money to meet his/her minimum living needs etc.

Causes of Poverty

Among the many causes forwarded by many experts, most common causes are:

1. Unemployment & underemployment

2. Population pressure

3. Unequal distribution of National Income

4. Selfish motives of some individuals

Various Programmes/Schemes to eradicate Poverty

• National Rural Livelihood Mission (NRLM)

• Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

• Self Employment Scheme For Rehabilitation of Manual Scavengers (SRMS)

• Sampoorna Gram Rozgar Yojana (SGRY)

• Prime Minister’s Rozgar Yojana (PMRY)

• Pradhan Mantri Gramodaya Yojana (PMGY)

• National Rural Employment Guarantee Act (NREGA)

• Swarna Jayanti Gram Swarozgar Yojana (SGSY)

Village Grain Bank Scheme

Village Grain Bank scheme is being implemented since November 2004 by the Department of Food & Public Distribution. The scheme aims to help marginalised food insecure households who do not have sufficient resources to purchase rations during lean season or natural calamities. Such households in need of food grains can borrow them from the village grain banks set up within their villages to be subsequently returned to the bank. Such banks can be set up in food scarce areas like drought prone areas, hot and cold desert areas, tribal areas and the inaccessible hilly areas which remain cut off because of natural calamities like flood etc. About 30—40 below Poverty Line/Antyodaya Anna Yojna families may form a grain bank. These villages are to be identified/notified by the concerned State Government/Union Territories. Food grains are loaned to BPL families at the rate of one quintal per family under village grain bank scheme. So far (January 2013), the government has sanctioned 21,751 village grain banks in 20 states to provide safeguard against starvation during the period of lean season or natural calamities.


Two words are normally used are micro credit and micro finance. Micro Credit is distribution of small amounts of credit (loans and advances) to poor people for their self and family development. Micro Finance, on the other hand means allowing poor to the basic financial services like opening savings account, access to insurance products, credit etc. where amount deposited or credit taken are for very small amounts.

Micro credit, in simple words, can be described as providing small dose of credit along with other financial services and developing thrift among poor people located in different place like rural, semi-urban, and urban centers for raising their income levels and standard of living.

Grameen Bank of Bangladesh:

Dr. Muhammad Yunus is known throughout the world as a pioneer of the micro credit concept that uses small loans made at affordable interest rates to transform the lives of impoverished people, mostly women. The founder of the Grameen Bank in Bangladesh, Yunus and Grameen were jointly awarded the Nobel Peace Prize in 2006.

The YH Malegam Committee:

Since Reserve Bank of India (RBI) does not regulate the interest rates charged by Micro Finance Institutions, the central bank has issued instructions on a Fair Practice Code to be adhered to by all Non-Banking Financial Companies (NBFCs) in terms of which the NBFCs should not charge exorbitant rates of interest and resort to undue harassment viz., persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. In this context, the RBI had constituted a Sub-Committee Shri Y.H. Malegam which is currently working on various issued of the Micro finance sector in the country. It will submit its report in 3 months. Apart from this, the Department of Financial Services is also mulling over to introduce the Micro Finance (Development & Regulation) Bill, 2010 after taking into account the views of RBI and the Malegam Committee recommendations.

Pre-requisites of Micro Credit/Financed

1. Hassel-free system of delivery of financial services, like loans , insurance products etc. along with least documentation and security (ies).

2. Expeditious sanctions of loans and quick disbursement of sanctioned funds should be most important prerequisite of micro credit/finance activity.

Why Micro Credit /Finance

• Micro credit is supposed to help people seeking it in many ways. For instance, it helps poor to get financial services at his doorstep, get rid of money lenders, develop habit of banking and thrift among members of Self Help Groups etc.

Self Help Groups (SHG)

Simple definition of a Self Help Group is a Group of small to very small poor likeminded people who come together to help themselves together in achieving their dreams of subsistence living with proper living conditions. Breaking this definition into small unit points we find:

• Self Help Groups (SHGs) are small groups of poor people.

• The members of an SHG face similar problems.

• They help each other to solve their problems.

• SHGs promote small saving among their members. The savings are kept with the bank. This is the common fund in the name of the SHG.

• The SHG gives small loans to its members from its common fund.

• After six months, if the SHG satisfies the bank as per the checklist for quality, bank can give loans to the SHG.

Self Help Group and Joint Liability Group (JLG)- Differences


Minimum15-20 members – Minimum 3-5 members

Meetings compulsory – Not necessary

Banks Loans available – Get loans from only MFI

Gets the benefits of – There is no such benefit govt. scheme

Individual responsibility -Share responsibility and stand as guarantor for each other.

Relevance to Bankers

• Very poor people can save small amounts. But slowly this amount may swell and can be a big amount.

• Looking to the need and importance of banking with SHGs, even RBI and NABARD have approved banks’ dealing with such groups.

• RBI has classified loans to SHGs as priority sector lending.

• NABARD gives cent percent refinance to banks for loans to SHGs.

• All commercial banks, RRBs and cooperative banks have realised that SHGs are good business.

• Lending to SHGs fulfill social commitment of banks also.


Size of the SHG

• The ideal size of an SHG is 10 to 20 members.

• The group need not be registered.


• From one family, only one person can become a member of a SHG. (More families canjoin SHGs this way.)

• The group normally consists of either only men or of only women. Mixed groups are generally not preferred.

• Women’s groups are generally found to perform better. (They are better in savings and they usually ensure proper use of loans.)

• Members should have the same social and financial background.

Common Living Conditions

Members chosen for SHGs should have following living/working conditions

• Living in Kucha houses

• Having no access to safe drinking water

• Having no sanitary latrine

• Those who have only one or no one employed in the family

• Presence of illiterate adults in the family

• Presence of an alcoholic or drug addict in the family or a member suffering permanently from prolonged illness

• Presence of children below five years in the family

• Family eating with difficulty two meals or less a day

• Scheduled Caste or Scheduled Tribe families

• If a family has at least four of the above 9 common living conditions, it can be considered poor, and one member of that family can be encouraged to become a member of an SHG

• Also use locally important conditions to decide whether a family is poor.

• Women / men from very poor households.

• Those who depend on moneylenders even for daily necessities.

• Those with a per capita income not exceeding Rs.250 per month.

• Those having dry land holding not exceeding 2.5 acres.

Classification of Advances to SHG

• Advances made to SHGs are classified under different categories (Direct Agriculture/MSE) of Priority Sector Credit on the basis of main/predominant activity undertaken by the group members out of the Bank loan.

• In all other cases, loans not exceeding Rs.50000/- per borrower provided through SHG will be classified under Micro Credit within Priority Sector.