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

Q17: As of February 2026, which of the following pairs of Bank Type and its corresponding Total PSL Target is INCORRECT?

A
Domestic Scheduled Commercial Banks — 40 per cent
B
Regional Rural Banks (RRBs) — 75 per cent
C
Small Finance Banks (SFBs) — 75 per cent
D
Foreign Banks (less than 20 branches) — 40 per cent
✅ Correct Answer: C
Correction: The total PSL target for Small Finance Banks (SFBs) is 60 per cent as of February 2026, not 75 per cent.
The RBI lowered this target in the revised Master Direction (2025) to provide operational breathing room to these banks.
Correct Pairs: Domestic SCBs: 40 per cent.
RRBs: 75 per cent.
Foreign Banks: 40 per cent.