(Reuters) -India's central bank on Friday reduced the mandated portion of lending that small finance banks have to extend to priority sectors such as agriculture and small businesses, lowering it by 15 percentage points.

Small finance banks currently have to extend 75% of their loans to priority sectors. After a review, the Reserve Bank of India has effectively cut the requirement to 60% of total lending.

(Reporting by Manvi Pant in Bengaluru; Editing by Vijay Kishore)