AGRICULTURAL FINANCE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the priority sector lending target for agricultural credit set by RBI for domestic scheduled commercial banks?
Domestic scheduled commercial banks must lend 18% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher, to agriculture.
What is the overall priority sector lending target for Scheduled Commercial Banks as a percentage of Adjusted Net Bank Credit (ANBC)?
40% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure.
What is a Kisan Credit Card (KCC) and its primary purpose?
Kisan Credit Card is a revolving credit facility provided to farmers to meet their short-term credit needs for cultivation of crops, post-harvest expenses, and allied activities.
What is the sub-target for lending to agriculture sector under priority sector norms for domestic banks?
18% of ANBC must go to agriculture sector.
What does the term 'direct agriculture' mean in the context of priority sector lending?
Direct agriculture refers to loans given directly to individual farmers, Self Help Groups, or Joint Liability Groups of farmers for agricultural and allied activities including crop loans, term loans for farm mechanization, and irrigation.
What is the maximum loan limit under the KCC scheme for small and marginal farmers for post-harvest expenses?
Post-harvest expenses up to 10% of crop loan limit.
What is the maximum repayment period generally allowed for short-term crop loans under KCC?
Short-term crop loans under KCC are typically repayable within 12 months and are renewed annually based on crop seasons.
What is 'flow of credit to agriculture' as defined under priority sector lending targets?
Credit flowing to farm-related activities including crop loans and allied sectors.
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