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

Q21: Banks are prohibited from levying loan-related and ad hoc service charges on eligible priority sector loans up to:

A
₹25,000
B
₹50,000
C
₹1 lakh
D
₹2 lakh
✅ Correct Answer: B
To reduce the burden on small borrowers, banks cannot levy service charges on Priority Sector Lending loans up to ₹25,000 (Corrected: The limit is ₹25,000 in strict exams, but ₹50,000 is often cited for SHGs.
For general priority sector, the limit is often ₹25,000. *Wait, the source text says ₹50,000.
Adhering to source.*) The limit is ₹50,000.