Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
What is the difference between Previous Target and Revised Target?
Direct Answer
Previous Target:SFBs and UCBs had a PSL target of 75% of ANBC.
Revised Target:Reduced to 60% of ANBC.
RRB Status:Regional Rural Banks maintain their 75% ANBC target.
What are FCNR (B) and NRE term deposits?
Direct Answer
FCNR (B) and NRE term deposits are foreign currency and external rupee accounts maintained by Non-Resident Indians.
What is the National Cooperative Development Corporation (NCDC)?
Direct Answer
The National Cooperative Development Corporation (NCDC) is a statutory corporation that promotes cooperative development in agriculture, rural industries, and allied sectors
Under the revised Priority Sector Lending norms, banks are explicitly prohibited from levying any processing or service charges on PSL loans up to what maximum loan amount?
How are Priority Sector targets calculated?
Direct Answer
Priority Sector targets are calculated against a bank's lending base, measured as either Adjusted Net Bank Credit (ANBC) or the Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBSE
What is Adjusted Net Bank Credit (ANBC)?
Direct Answer
Adjusted Net Bank Credit (ANBC) is the primary denominator used to calculate a bank's priority sector lending quota.
When a newly transitioned Small Finance Bank (SFB) commences operations, upon which specific financial baseline is its very first Priority Sector Lending target calculated under the 2026 framework?
Direct Answer
The first audited balance sheet as on March 31st post commencement of operations
What are Priority Sector Lending Certificates (PSLCs)?
Direct Answer
Priority Sector Lending Certificates (PSLCs) are tradable instruments that allow banks with a shortfall in their PSL targets to buy the "priority sector achievement" of banks that have over-performed, without transferring the actual loan asset risk
What are education loans?
Direct Answer
Education loans are a vital component of PSL, designed to ensure that meritorious students can access higher education and vocational training without facing credit starvation
What are Housing loans under PSL?
Direct Answer
Housing loans under PSL are strictly capped by both the loan size and the total asset cost to prevent banks from financing luxury real estate under the guise of social lending
What is the difference between Corporate / Institutional and Individual Households?
Direct Answer
Corporate / Institutional:Loans up to 30 crore for solar, biomass, wind, and micro-hydel power generators.
Individual Households:Loans strictly capped at 10 lakh per household for residential installations.
What is Social Infrastructure?
Direct Answer
Social Infrastructure refers to physical facilities that provide essential societal services.
When domestic scheduled commercial banks fail to achieve their mandated Priority Sector Lending targets, the Reserve Bank of India typically directs them to deposit the shortfall amount into the Rural Infrastructure Development Fund (RIDF). Which institution maintains and manages the RIDF?
What is the MSME sector (Micro, Small, and Medium Enterprises)?
Direct Answer
The MSME sector (Micro, Small, and Medium Enterprises) is a major driver of employment.
What are start-ups registered under the Ministry of Commerce and Industry?
Direct Answer
Start-ups registered under the Ministry of Commerce and Industry are recognized as vital engines of innovation and job creation.
What is the Weaker Sections category?
Direct Answer
The "Weaker Sections" category is a broad umbrella under PSL that consolidates various marginalized borrower groups, ensuring a significant portion of total bank credit is directed toward deep financial inclusion
What is the Regional Disparity Framework?
Direct Answer
The Regional Disparity Framework is an accounting multiplier used by the RBI to artificially inflate or deflate a bank's priority sector lending score based on the geographic location of the borrower
What is on-lending?
Direct Answer
"On-lending" refers to the practice where a bank provides a wholesale bulk loan to an NBFC, which the NBFC then breaks up into smaller retail loans for priority sector borrowers (like small shopkeepers or farmers
What are Farmers Producers Organisations (FPOs)?
Direct Answer
Farmers Producers Organisations (FPOs) are collectives formed by groups of individual farmers (usually small and marginal) to pool resources, achieve economies of scale in buying fertilizers, and negotiate better selling prices
How is Agriculture under PSL classified?
Direct Answer
Agriculture under PSL is divided into three sub-segments:Farm Credit (direct farming), Agriculture Infrastructure (storage/logistics), and Ancillary Activities (processing
Within the "Ancillary Activities" sub-segment of agricultural priority sector lending,
what is the maximum loan limit per borrower for setting up food and agro-processing units?
What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?
Direct Answer
PMJDY is India's national mission for financial inclusion, providing basic savings bank deposit accounts to the unbanked.
What is TReDS (Trade Receivables Discounting System)?
Direct Answer
TReDS (Trade Receivables Discounting System) is an electronic platform where MSMEs can auction their unpaid corporate invoices to banks at a discount to get immediate cash
When banks lend to Microfinance Institutions (MFIs) for on-lending to priority sectors, the ultimate retail loan qualifies for PSL status only if the borrower's annual household income does not exceed what standardized limit across both rural and urban areas?
What are PSLCs?
Direct Answer
PSLCs are digital certificates that allow banks to trade their priority sector achievements.
What are Self-Help Groups (SHGs)?
Direct Answer
Self-Help Groups (SHGs) are informal associations of 10 to 20 local women who pool savings and take joint-liability loans to start micro-businesses.
What is the difference between Metropolitan Centers and Non-Metropolitan Centers?
Direct Answer
Metropolitan Centers:(Population > 10 Lakh)
Maximum Repair Cap:₹10 Lakh
Non-Metropolitan Centers:(Population < 10 Lakh)
Maximum Repair Cap:₹6 Lakh
What is Agricultural credit under PSL?
When a scheduled commercial bank misses its Priority Sector Lending targets and is mandated to deposit the shortfall amount into the Rural Infrastructure Development Fund (RIDF) or other related refinance funds, how does the RBI determine the interest rate paid to the bank on these deposits?
Direct Answer
It is inversely proportional to the extent of the bank's PSL shortfall
What is the difference between The Base Date and The Target Year?
Direct Answer
The Base Date:March 31, 2026
(Bank's total ANBC is finalized at ₹100,000 Crore)
The Target Year:FY 2026-2027
(Bank must lend exactly 40% of that fixed base:₹40,000 Crore)
What is PM SVANidhi?
Direct Answer
PM SVANidhi is a central sector scheme that provides ultra-small, collateral-free working capital loans (₹10,000, then ₹20,000, then ₹50,000) to street vendors to help them resume livelihoods post-economic shocks
What is Compressed Bio-Gas (CBG)?
Direct Answer
Compressed Bio-Gas (CBG) is produced through the anaerobic decomposition of agricultural waste, cattle dung, and municipal solid waste.