Investments in RIDF to be treated as priority sector lending: RBI

"The outstanding deposits under the above funds with NABARD as on preceding March 31 will form part of Adjusted Net Bank Credit, RBI adds

The Reserve Bank of India (RBI) said that banks' outstanding deposits under the Rural Infrastructure Development Fund (RIDF) and some funds with NABARD would be treated as priority sector lending under indirect agriculture category. "It has been decided to include the outstanding deposits placed by banks under Rural Infrastructure Development Fund (RIDF) and certain other funds established with NABARD, on account of their shortfall in lending to priority sector as part of indirect agriculture under priority sector classification," RBI said in a notification. "The outstanding deposits under the above funds with NABARD as on preceding March 31 will form part of Adjusted Net Bank Credit," it added.