New Delhi, Nov. 7 -- The Reserve Bank of India (RBI) has proposed changes to priority sector lending (PSL) calculations and documentation requirements for banks, with implications for agricultural lending and the treatment of certain trade-credit exposures.

The proposals include stricter verification of gold-backed agricultural loans and a change in how banks account for trade bills discounted under letters of credit (LCs) while calculating their priority sector lending obligations.

The changes form part of RBI's draft Reserve Bank of India (Priority Sector Lending - Targets and Classification) Directions, 2026, released on November 5. The central bank has invited comments until November 26.

Under the draft, banks will have to maintain...