<h1>RBI Guidelines: Bank Credit to MFIs Qualifies as Priority Sector if 85% Assets Qualify, 75% Loans for Income Activities.</h1> Under the Reserve Bank of India's guidelines issued on July 20, 2012, bank credit to Micro Finance Institutions (MFIs) for on-lending to individuals and members of Self Help Groups (SHGs) or Joint Liability Groups (JLGs) qualifies as a priority sector advance if at least 85% of MFI assets are qualifying assets. Additionally, 75% of loans must be for income-generating activities. Scheduled Commercial Banks must allocate 40% of their Adjusted Net Bank Credit or Credit Equivalent Amount of Off-balance Sheet Exposure to the priority sector. This measure aims to enhance funding flow to MFIs, as stated by a finance ministry official.