India cbank tightens priority sector lending norms for banks

MUMBAI, March 22 (Reuters) - India's central bank said on Friday banks' "contingent liability" items do not conform with priority sector lending guidelines.

Banks' "contingent liabilities" include non-fund liabilities such as bank guarantees.

"Therefore, banks are advised to declassify such accounts with retrospective effect, where a contingent liability/off-balance sheet item is treated as part of priority sector target achievement," the Reserve Bank of India said in a statement. (Reporting by Shamik Paul; Editing by Subhranshu Sahu)

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