CCI okays TVS Emerald to acquire shares of combination of PGIM India Asset & PGIM India Trustees (See 'Corp Brief') CCI approves subscription of equity by Kedaara Pearl & Kedaara Capital in Axis Finance (See 'Corp Brief') CCI nod for combination of certain CCPS and Romsons Group (See 'Corp Brief') IPR - Search engine cannot be permitted to auction or monetise that asset without proprietor's authorisation: HC (See 'Legal Desk') DoPPW and J&K Bank sign MoU to expand pension-related services in UT (See 'Corp Brief') NHAI to transit towards Predictive Asset Management for Maintenance of NHs (See 'Corp Brief') PMLA - 180-day limit for provisional attachment cannot be extended due to Supreme Court's COVID limitation orders: HC (See 'Legal Desk') ASI and National Museum of Denmark sign MoU for underwater Archaeological Investigation (See 'Corp Brief') Leyland, Switch Mobility to provide discounts for replacement of old trucks and buses (See 'Corp Brief') MeitY convenes Consultation on 'Supporting AI Transformation of IT Services Industry' (See 'Corp Brief') IPR - Copyright - object of Section 57 is to lift an author's status beyond material gains of copyright & give it special status & put intellectual property on a higher pedestal than normal objects of copyright: HC (See 'Legal Desk') Railways approves Rs.201 Crore Kavach Project for Ambala Division (See 'Corp Brief') IICA hosts National Conference on 'Redefining India's Restructuring Ecosystem' (See 'Corp Brief') Companies Act - Aggregate allotment of shares to 284 persons through 7 issuances demonstrates fund-raising exercise beyond scope of statutory exemption; it constitutes deemed public offer attracting requirements of Companies Act & applicable SEBI regulations: SAT (See 'Legal Desk') PM Modi, Macron inaugurate 'Bharat Innovates 2026' (See 'Corp Brief') Holistic Access to Justice Scheme and 'Reforms Utsav' held in HP (See 'Corp Brief') National Urban Learning Platform launched as urban arm of iGOT-Mission Karmayogi (See 'Corp Brief') CSIR-NIScPR Organized Skill Training Programme on Basics of Koha Software (See 'Corp Brief') PMLA- Forfeiture unsustainable where nexus between property and illegally acquired income not established: SAFEMA (See 'Legal Desk') The Income Tax Act, 2025: Privacy, Power, and Constitutional Scrutiny (See CORP EINSICHT )

Print

NITI Aayog, Rocky Mountain release 'Banking on EVs in India' report

Published: Jan 21, 2022

By TIOLCorplaws News Service

NEW DELHI, JAN 21, 2022: NITI Aayog, Rocky Mountain Institute (RMI), and RMI India today released a report, titled 'Banking on Electric Vehicles in India', which outlines the importance of priority-sector recognition for retail lending in the electric mobility ecosystem. The report provides considerations and recommendations to inform the inclusion of EVs in the Reserve Bank of India's (RBI's) priority-sector lending (PSL) guidelines.

Banks and non-banking financial companies (NBFCs) in India have the potential to achieve an electric vehicle (EV) financing market size of Rs 40,000 crore (USD 5 billion) by 2025 and Rs 3.7 lakh crore (USD 50 billion) by 2030. However, retail finance for EVs has been slow to pick up.

"Financial institutions have an important role to play in accelerating the adoption of EVs in India and supporting the decarbonisation of road transport," said Amitabh Kant, CEO, NITI Aayog. "RBI's PSL mandate has a proven track record of improving the supply of formal credit towards areas of national priority. It can provide a strong regulatory incentive for banks and NBFCs to scale their financing to EVs."

Priority-sector lending aims to expand financial access and support employment opportunities in India. In order to meet these goals, the report highlights that the RBI may consider various EV segments and use cases based on five parameters: socio-economic potential, livelihood generation potential, scalability, techno-economic viability, and stakeholder acceptability.

"Buyers are unable to access low-interest rates and long loan tenures for EVs as banks are concerned about resale value and product quality. Priority-sector lending can encourage banks to fast-track India's transition to EVs and help achieve our 2070 climate goals," said Clay Stranger, Managing Director, RMI.

The report indicates that electric two-wheelers, three-wheelers, and commercial four-wheelers are early segments to prioritise under PSL. Moving forward, the engagement of other ministries and industry stakeholders will be important to ensuring the guidelines designed can effectively enhance EV investment in India.

To maximise the impact of the inclusion of EVs, the report also recommends a clear sub-target and penalty mechanism for priority sector lending to renewable energy and EVs. Furthermore, it suggests recognition of EVs as an infrastructure sub-sector by the Ministry of Finance and the incorporation of EVs as a separate reporting category under the RBI. Multiprong solutions such as these are needed not only for EV penetration and businesses, but also for the financial sector and India's 2070 net-zero target.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.