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<h1>Priority sector lending requirement for foreign banks shapes credit allocation and encourages rural and under banked branch outreach.</h1> Foreign banks are subject to a priority sector lending requirement measured against their Adjusted Net Bank Credit or the credit equivalent of off balance sheet exposures, including sub targets for small enterprises and export credit, with no specific targets for agricultural or scheduled caste/tribe lending; branch expansion into rural and under banked areas is encouraged under the Reserve Bank's Branch Authorisation Policy, which gives weight to the nature and scope of services provided to common persons when considering branch applications.