Governments May ask Central Bank to Consider Roads as a Priority Sector

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(Reserve Bank of India RBI) may ease norms for infrastructure funding www.ambitionias.com
  • The Road Transport and Highways Ministry has decided to approach the Reserve Bank of India (RBI) Governor Raghuram Rajan with a proposal to include road projects under the priority sector list for lending purposes and review the non-performing assets norms to revive Rs. 40,000-crore worth of highway projects that have not taken off due to bureaucratic delays and cost overruns.
  • The banks provide ‘priority sector’ lending in the form of loans to farmers for agriculture and small enterprises, poor people for housing, students for education etc.
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