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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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 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 PSL target for domestic banks as a percentage of ANBC or CEOBE, whichever is higher?
40% of ANBC or CEOBE, whichever is higher
What is the PSL target specifically for advances to the Agriculture sector?
Banks must lend 18% of ANBC or CEOBE, whichever is higher, to Agriculture, of which 10% must flow to Small and Marginal Farmers (SMFs).
What is the PSL sub-target for Non-Corporate Farmers for indirect agriculture finance?
Indirect agriculture up to 4.5% of ANBC included in 18% target
What is the PSL target for Micro Enterprises under the MSME category?
Banks must ensure that 7.5% of ANBC or CEOBE, whichever is higher, goes to Micro Enterprises as part of their overall PSL obligations.
What is the maximum investment limit for loans to Medium Enterprises in the manufacturing sector under PSL?
Investment in plant and machinery above Rs 10 crore up to Rs 50 crore
What is the PSL target for Weaker Sections as mandated by RBI?
Banks are required to lend 12% of ANBC or CEOBE, whichever is higher, to Weaker Sections, which include small and marginal farmers, SCs/STs, and other vulnerable groups.
Which apex body oversees the rural infrastructure development fund (RIDF) maintained by banks for PSL shortfalls?
NABARD manages and administers the RIDF
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