ROLE OF PRIORITY SECTOR & MSME IN THE INDIAN ECONOMY
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the current overall Priority Sector Lending (PSL) target for domestic scheduled commercial banks?
Domestic scheduled commercial banks must lend 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher, to priority sectors.
What is the PSL target for Small and Marginal Farmers (SMF) within the agriculture sector?
10% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure
Which RBI circular governs the current Priority Sector Lending guidelines?
The Master Directions on Priority Sector Lending issued by RBI (updated periodically) govern PSL guidelines; the most recent comprehensive revision took effect from April 2020.
What is the PSL sub-target for lending to Non-Corporate Farmers (NCF)?
Notional limit based on system-wide average of last three years
What are the eight broad categories included under Priority Sector Lending?
The eight categories are Agriculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others (including weaker sections and distressed persons).
What is the maximum loan limit under Priority Sector for housing loans in metropolitan areas?
Rs. 35 lakh per dwelling unit in metropolitan centres
What is the PSL sub-target for lending to the agriculture sector?
Banks must direct 18% of ANBC to the agriculture sector, of which 10% must flow to small and marginal farmers specifically.
Which ministry oversees the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)?
Ministry of MSME, jointly operated with SIDBI
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