Module: General Practice
Q16: Under the Priority Sector Lending (PSL) norms prescribed by the RBI, domestic commercial banks are required to lend 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors. Within this, what is the specific sub-target mandated exclusively for Micro Enterprises?
✅ Correct Answer: B
Correct Option: B Concept: Priority Sector Lending (PSL) Targets.
Breakdown: Total Priority Sector: 40% of ANBC.
Agriculture: 18%. Micro Enterprises: 7.5% of ANBC.
Weaker Sections: 12%. Relevance: This ensures that banks do not just lend to larger "Small" or "Medium" firms to meet targets, but specifically channel funds to the smallest units (Micro).
Breakdown: Total Priority Sector: 40% of ANBC.
Agriculture: 18%. Micro Enterprises: 7.5% of ANBC.
Weaker Sections: 12%. Relevance: This ensures that banks do not just lend to larger "Small" or "Medium" firms to meet targets, but specifically channel funds to the smallest units (Micro).