Banking on Electric Vehicles in India

This report by RMI proposes the inclusion of electric vehicles (EVs) within India's Priority Sector Lending (PSL) guidelines to address financing gaps and risks that currently hinder retail EV adoption.

• The total cumulative investment required for India's electric vehicle transition is estimated to reach INR 19.7 lakh crore ($US266 billion) from 2020 to 2030.
• Retail lending for EVs is lagging because banks and non-banking finance companies (NBFCs) perceive risks in the assets and business models, leading to less favorable interest rates and tenures compared to internal combustion engine vehicles.
• Integrating EVs into the Reserve Bank of India's Priority Sector Lending (PSL) guidelines—which mandate that scheduled banks allocate 40 percent of total credit to priority sectors—could institutionalize EV financing and support credit-deficient segments.

APA

RMI (2022). Banking on Electric Vehicles in India. https://rmi.org/resources/banking-on-electric-vehicles-in-india/

Chicago

RMI. Banking on Electric Vehicles in India. 2022. https://rmi.org/resources/banking-on-electric-vehicles-in-india/.

Wikipedia

{{cite report |author=RMI |title=Banking on Electric Vehicles in India |date=21 January 2022 |url=https://rmi.org/resources/banking-on-electric-vehicles-in-india/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022banking, author = {{RMI}}, title = {{Banking on Electric Vehicles in India}}, institution = {RMI}, year = {2022}, month = jan, url = {https://rmi.org/resources/banking-on-electric-vehicles-in-india/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }