<h1>29 Foreign Banks in India Must Allocate 32% Credit to Priority Sectors; Encouraged to Serve Rural Areas.</h1> Currently, 29 foreign banks operate branches in India, with five more expressing interest in opening their first branches. These banks must allocate 32% of their Adjusted Net Bank Credit or equivalent off-balance sheet exposure to priority sectors, including 10% for small enterprises and 12% for export credit. No specific lending targets are set for farmers or scheduled castes and tribes. While not required to open branches in rural areas, the Reserve Bank of India encourages it and considers the extent of services provided to rural and under-banked populations when approving new branch applications.