SFB · SMALLFINANCE

Priority Sector Advances

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Small Finance Bank — Small Finance Bank.

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What is the overall priority sector lending target for Small Finance Banks as a percentage of ANBC?

Small Finance Banks are required to lend 75% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, to priority sectors.

What is the PSL sub-target for small and marginal farmers set separately for SFBs?

8% of ANBC, higher than universal banks' 7.5%

Which RBI guidelines govern priority sector lending obligations for Small Finance Banks?

The Master Directions on Priority Sector Lending issued by RBI govern PSL obligations for SFBs, with specific higher targets compared to universal commercial banks.

Under which RBI Master Direction are the PSL norms for SFBs currently governed?

RBI Master Direction on Priority Sector Lending, 2016 (updated periodically)

What is the target for advances to weaker sections for Small Finance Banks?

Small Finance Banks must lend at least 12% of ANBC to weaker sections, which is higher than the 10% mandated for scheduled commercial banks.

What is the maximum individual loan limit for housing loans in metropolitan centres for PSL classification?

Rs. 35 lakh in metropolitan centres with population above 10 lakh

Which categories are included under the agriculture sector for PSL classification?

Agriculture PSL includes farm credit (crop loans, term loans to farmers), agriculture infrastructure, and ancillary activities such as loans for food and agro-processing.

What is the loan limit for housing loans in other centres (non-metropolitan) to qualify as PSL?

Rs. 25 lakh in centres other than metropolitan

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