The Reserve Bank of India’s Priority Sector Lending (PSL) guidelines require scheduled banks to allocate 40 percent of their total credit to sectors of national priority. Including EVs as a priority sector has the potential to enhance financing for credit-deficient segments and use cases and institutionalize EVs in India’s financial system.
NITI Aayog is working with the Reserve Bank of India to operationalize the inclusion of EVs as a priority sector. There is also a need to engage other ministries, financial institutions, and the EV industry in the design of the guidelines. This report “Banking on Electric Vehicles in India: A Blueprint for Inclusion of EVs in Priority Sector Lending Guidelines” has been prepared by NITI Aayog, RMI, and RMI India. It is intended to support ongoing and future deliberations on consideration of priority sector status for EVs and the design of guidelines for EVs. The report provides:
- Context on the structure, mechanics, and history of PSL
- Considerations and recommendations to inform the inclusion of EVs in the PSL guidelines
- Actions needed to implement and ensure success of EVs as a priority sector
Download the report here