PRIORITY SECTIOR LENDING
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) as a percentage of Adjusted Net Bank Credit (ANBC) for domestic scheduled commercial banks?
The overall PSL target is 40% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBSE), whichever is higher.
What is the PSL target for Renewable Energy under domestic scheduled commercial banks?
7.5% of ANBC is the sub-target for renewable energy.
What is the PSL target for foreign banks with 20 or more branches in India?
Foreign banks with 20 or more branches must achieve 40% of ANBC as PSL, same as domestic scheduled commercial banks, to be achieved in a phased manner.
What is the maximum loan amount for solar rooftop systems to qualify under Priority Sector?
Up to ₹30 lakh per borrower qualifies under priority sector.
What is the sub-target for Agriculture under Priority Sector Lending for domestic scheduled commercial banks?
The sub-target for Agriculture is 18% of ANBC or CEOBSE, whichever is higher, including 8% for Small and Marginal Farmers.
Which RBI circular governs the current Priority Sector Lending guidelines for banks?
RBI Master Directions on Priority Sector Lending govern current guidelines.
What is the PSL sub-target for Micro Enterprises under the Micro, Small and Medium Enterprises (MSME) category?
There is no separate mandated sub-target for Micro Enterprises within MSME under PSL; however, within the overall MSME category, banks are expected to give preference to micro enterprises.
What is the PSL sub-target for Medium Enterprises within the MSME category?
No separate sub-target exists for medium enterprises under PSL.
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