"[1] "A forward market for Priority Sector Lending Certificates [social credits] will help banks to focus and plan better.
Priority Sector Lending Certificates is different from Securitization as the latter involves a transfer of credit risk.
Government "can intervene by buying the Priority Sector Lending Certificates [social credits] in the market this would push up the price.
"[1] Market based pricing of Priority Sector Lending Certificates induces a "market-driven incentive for efficiency".
[6] "The Priority Sector Lending Certificates would have a standard lot size of INR 2.5 million of multiples thereof...Normally PSLCs will be issued against the underlying assets.
"[4] Penalties are as essential as the carrot (of allowing banks to stay away from direct lending and taking credit risk in the priority sector; compensating those banks that exceed their priority sector lending target) and so the "carrot should be flanked by the stick.
"[1] Priority Sector Lending certificates have similarities with a cap and trade systems like Carbon Credits.
On 7 April 2016 the portal for trading Priority Sector Lending Certificates was launched by the Reserve Bank of India.