Role of Priority sector and MSME in the Indian Economy and Infrastructure including Social Infrastructure
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 66 rapid-fire Q&A cards.
What is the overall target for Priority Sector Lending (PSL) as a percentage of Adjusted Net Bank Credit (ANBC) for domestic scheduled commercial banks?
Domestic scheduled commercial banks must lend 40% of their ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher, to the priority sector.
What is the PSL target for Foreign Banks with less than 20 branches operating in India?
40% of ANBC or credit equivalent of off-balance sheet exposure.
Which categories are included under Priority Sector Lending as defined by RBI?
Priority Sector includes Agriculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others (including weaker sections and distressed persons).
What is the sub-target for lending to Weaker Sections under Priority Sector guidelines?
12% of ANBC for domestic scheduled commercial banks.
What is the PSL sub-target prescribed for agriculture lending by domestic commercial banks?
Banks must lend 18% of ANBC to agriculture, of which 10% must be to small and marginal farmers specifically.
Which fund receives shortfall contributions from banks failing to meet PSL targets?
Rural Infrastructure Development Fund (RIDF) managed by NABARD.
What does MSME stand for and how are Micro enterprises defined under the revised 2020 classification?
MSME stands for Micro, Small, and Medium Enterprises; a Micro enterprise is one with investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
What is the investment limit for a Micro enterprise in manufacturing under the revised 2020 MSME definition?
Investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
Video classes for this chapter
More chapters in Module A - Indian Economic Architecture
Master the full IEIFS syllabus
Every chapter of Indian Economy and Indian Financial System — videos, tests, notes and one-liner decks in one place.