Priority Sector Lending – Top 37 Vital Bank Promotion: 18 Revision Flashcards

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Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
For the purpose of priority sector lending targets, the base for computation is the Adjusted Net Bank Credit (ANBC) or the ……, whichever is higher.
Direct Answer
Credit Equivalent of Off-Balance Sheet Exposures (CEOBSE)
What is the specific sub-target prescribed for Small and Marginal Farmers (SMFs) under the Agriculture category for Domestic Commercial Banks?
Direct Answer
10 per cent
For districts with comparatively higher credit flow (per capita PSL greater than ₹42,000), what weight is assigned to the incremental priority sector credit?
Direct Answer
90%
What is the target for "Advances to Weaker Sections" for Small Finance Banks (SFBs)?
Direct Answer
12 per cent
Loans to FPOs/FPCs undertaking farming with assured marketing of their produce at a pre-determined price are eligible for classification as Farm Credit up to:
Direct Answer
₹10 crore
For the purpose of priority sector classification, a "Small Farmer" is defined as a farmer with a landholding of:
Direct Answer
More than 1 hectare and up to 2 hectares
Loans to FPOs/FPCs can be reckoned towards the "Small and Marginal Farmers" (SMF) sub-target provided that the land-holding share of SMFs in the FPO is not less than:
Direct Answer
75 per cent
What is the maximum loan limit per borrower for loans to individuals for educational purposes to be eligible for priority sector classification?
Direct Answer
₹25 lakh
Loans to Start-ups that conform to the definition of MSME are eligible for priority sector classification up to a limit of:
Direct Answer
₹50 crore
Bank loans for "Affordable Housing" are eligible if they use at least 50% of FAR/FSI for dwelling units with a carpet area of not more than:
Direct Answer
60 sq.m

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Under "Social Infrastructure," loans up to ₹12 crore per borrower are eligible specifically for:
Direct Answer
Health care facilities in Tier II to Tier VI centres
What is the loan limit per borrower for renewable energy-based power generators and public utilities to be eligible?
Direct Answer
₹35 crore
Loans to Start-ups engaged in activities other than Agriculture or MSME are eligible under the "Others" category up to:
Direct Answer
₹50 crore
Small Finance Banks (SFBs) are permitted to lend to registered NBFC-MFIs for on-lending provided the MFI has a 'Gross Loan Portfolio' (GLP) not exceeding:
Direct Answer
₹500 crore
Regarding Priority Sector Lending Certificates (PSLCs), what amount is eligible for classification?
Direct Answer
Net nominal value of PSLCs issued and purchased
Regarding the monitoring of Priority Sector Lending Targets:
Direct Answer
Shortfall/excess is monitored quarterly, and the annual achievement is the simple average of all quarters.
If a bank reports a shortfall of 8 percentage points in its overall PSL target, the interest rate on its RIDF contribution will be:
Direct Answer
Bank Rate minus 3%
Banks are prohibited from levying loan-related and ad hoc service charges on eligible priority sector loans up to:
Direct Answer
₹50,000