BP · 2026UPDATES

Priority Sector Lending

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for 2026 updates — Bank Promotions.

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Q

What is the overall target for Priority Sector Lending (PSL) as a percentage of Adjusted Net Bank Credit (ANBC) for domestic scheduled commercial banks?

A

The overall PSL target is 40% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher.

Q

What is the PSL target for Micro, Small and Medium Enterprises (MSME) sector?

A

No separate overall target; included within 40% PSL target.

Q

What is the revised PSL target for agriculture as per RBI guidelines?

A

The target for agriculture is 18% of ANBC, of which 8% must be towards Small and Marginal Farmers (SMFs).

Q

What is the sub-target for lending to Non-Corporate Farmers under PSL?

A

13.5% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure.

Q

What is the PSL target specifically earmarked for Micro Enterprises?

A

7.5% of ANBC must be directed towards Micro Enterprises under the Priority Sector.

Q

Under PSL, what is the loan limit for Kisan Credit Card (KCC) holders to qualify?

A

No specific upper cap; all KCC loans qualify under agriculture.

Q

What is the PSL target for Weaker Sections under RBI's revised norms?

A

15% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher, must be lent to Weaker Sections.

Q

What is the revised loan limit for housing loans in Tier I cities for PSL classification?

A

Loans up to Rs. 35 lakh qualify for PSL in Tier I cities.

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