Banking · Priority Sector Lending
A domestic commercial bank in India is evaluating its priority sector lending obligations at the end of the financial year. According to the current Reserve Bank of India Master Directions on Priority Sector Lending, what is the specific sub-target for lending to Small and Marginal Farmers (SMFs) out of Adjusted Net Bank Credit (ANBC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The sub-target is 7.5% of ANBC, aligned with Micro Enterprises.
- 2The sub-target is 18% of ANBC, which includes all categories of farmers.
- 3The sub-target is 10% of ANBC, having been increased in a phased manner from 8% to 10%.✓
- 4The sub-target is 8% of ANBC and has remained static for the last five years.
Correct answer
The sub-target is 10% of ANBC, having been increased in a phased manner from 8% to 10%.
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