1. Which category of banks has the highest Priority Sector Lending (PSL) target of 75% of ANBC?
Foreign Banks with 20 branches and above
Regional Rural Banks (RRBs) and Small Finance Banks (SFBs)
Public Sector Banks only
Domestic Scheduled Commercial Banks
Explanation:
RRBs and SFBs have a mandatory PSL target of 75% of their Adjusted Net Bank Credit (ANBC). Domestic commercial banks generally have a target of 40%.
2. Under Priority Sector Lending, what is the target for "Small and Marginal Farmers" for domestic commercial banks (as of 2024)?
18% of ANBC
8% of ANBC
10% of ANBC
12% of ANBC
Explanation:
Within the 18% target for Agriculture, a specific sub-target of 10% of Adjusted Net Bank Credit (ANBC) is mandated for Small and Marginal Farmers.
3. PSL Certificates (PSLCs) can be traded on which platform?
Inter-bank Call Money Market
NSE / BSE
CCIL
e-Kuber platform of RBI
Explanation:
PSLCs are traded on the RBI's CBS platform (e-Kuber). Banks buy/sell these certificates to meet their PSL targets without physically transferring the loans.
4. For Foreign Banks with less than 20 branches in India, the Priority Sector Lending (PSL) target is:
40% of ANBC, same as domestic banks.
40% of ANBC, but up to 32% can be in the form of export credit.
75% of ANBC.
32% of ANBC, specifically for exports.
Explanation:
Foreign banks with < 20 branches have a total PSL target of 40% of Adjusted Net Bank Credit (ANBC). However, they are treated differently regarding sub-targets; they can fulfill up to 32% of this target through Export Credit, which is not the case for domestic banks where export credit limits are much lower/specific.