Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q20: If a bank reports a shortfall of 8 percentage points in its overall PSL target, the interest rate on its RIDF contribution will be:

A
Bank Rate minus 2%
B
Bank Rate minus 3%
C
Bank Rate minus 4%
D
Bank Rate minus 5%
✅ Correct Answer: B
A shortfall of 5-10% in Priority Sector Lending targets results in an RIDF contribution interest rate of Bank Rate minus 3 percentage points.