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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A farmer with landholding up to 1 hectare (2.5 acres) is classified under which category of farmers for Priority Sector Lending purposes?
A farmer with landholding up to 1 hectare (2.5 acres) is classified as a Marginal Farmer under the SMF (Small and Marginal Farmers) definition.
What is the landholding upper limit (in acres) that defines a Marginal Farmer under Priority Sector Lending?
Up to 2.5 acres (1 hectare)
What is the upper landholding limit (in hectares) that distinguishes a Small Farmer from a Marginal Farmer under Priority Sector Lending norms?
A Small Farmer holds land above 1 hectare and up to 2 hectares, while a Marginal Farmer holds up to 1 hectare (2.5 acres).
Under PSL norms, what is the landholding range (in hectares) that defines a Small Farmer?
More than 1 hectare and up to 2 hectares (more than 2.5 acres up to 5 acres)
Under Priority Sector Lending guidelines, which broad category do Small and Marginal Farmers (SMF) fall under?
Small and Marginal Farmers fall under the Agriculture segment of Priority Sector Lending, which covers both direct and indirect agricultural finance.
A bank loan to an individual farmer for installing a stand-alone Solar Agriculture Pump falls under which PSL sub-category?
Agriculture (Farm Credit) to Individual Farmers
A crop loan extended directly to a farmer for cultivation of crops is classified as which type of agricultural lending under Priority Sector?
A crop loan extended directly to a farmer is classified as Direct Agricultural Finance (Farm Credit) under Priority Sector Lending.
For computing PSL targets, if a bank's ANBC is ₹50,000 crore and CEOBE is ₹52,000 crore, which figure is used as the base?
CEOBE of ₹52,000 crore (whichever is higher is used)
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