[OLD] PRIORITY SECTOR ADVANCES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
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What is the overall Priority Sector Lending (PSL) target prescribed by RBI for domestic scheduled commercial banks?
Domestic scheduled commercial banks (excluding RRBs and Small Finance Banks) must achieve 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher, as priority sector advances.
What is the sub-target for lending to Small and Marginal Farmers under priority sector?
Sub-target is 8% of ANBC or CEOBE, whichever is higher.
What percentage of ANBC must foreign banks with 20 or more branches in India lend to the priority sector?
Foreign banks with 20 or more branches must lend 40% of ANBC or CEOBE (whichever is higher) to the priority sector, with a sub-target of 18% for agriculture.
What is the maximum loan amount for a borrower through Micro Finance Institutions under priority sector housing?
Loans up to ₹2 lakh per borrower for housing qualify under priority sector.
Which categories are included under the priority sector as defined by RBI?
Priority sector includes Agriculture, Micro, Small and Medium Enterprises (MSMEs), Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others (including weaker sections and distressed persons).
What is the PSL target for Small Finance Banks in India?
75% of ANBC or CEOBE, whichever is higher.
What is the sub-target for agricultural lending within the priority sector for domestic scheduled commercial banks?
Domestic scheduled commercial banks must lend 18% of ANBC or CEOBE to agriculture, of which 10% must go to small and marginal farmers.
Under priority sector, what is the loan limit for micro credit extended by banks to Self Help Groups or individuals?
Loans up to ₹1 lakh per borrower qualify as micro credit.
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