PRIORITY SECTOR LENDING
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the overall target for Priority Sector Lending (PSL) for domestic scheduled commercial banks?
Domestic scheduled commercial banks must achieve PSL targets of 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher.
What is the PSL target for foreign banks with less than 20 branches in India?
32% of ANBC, phased in over 5 years
What PSL target is set for foreign banks with 20 or more branches in India?
Foreign banks with 20 or more branches are required to achieve a PSL target of 40% of ANBC, with sub-targets to be achieved in a phased manner by 2020.
Which sector receives the highest priority under RBI's Priority Sector Lending framework?
Agriculture sector with 18% sub-target
What is the sub-target for lending to Small and Marginal Farmers under PSL guidelines?
The sub-target for Small and Marginal Farmers is 8% of ANBC or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher.
What is the minimum land holding criterion for 'Small Farmer' classification under PSL?
Land holding between 1 and 2 hectares
What is the sub-target for Weaker Sections under Priority Sector Lending?
Weaker Sections must receive credit amounting to 12% of ANBC or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher.
What is the maximum loan limit for Marginal Farmers qualifying under PSL direct agriculture?
Farmers with land up to 1 hectare qualify
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