Banking · Priority Sector Lending
A Regional Rural Bank (RRB) is evaluating its Priority Sector Advances (PSA) compliance. As of March 31, 2025, the RRB's Net Bank Credit (NBC) is INR 500 crore. The RRB's actual lending to the Agriculture sector is INR 225 crore, and its lending to Small and Marginal Farmers (SMF) is INR 55 crore. Which of the following statements accurately reflects the RRB's compliance with the specific targets for Agriculture and SMF?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The RRB has met the Agriculture target, as the revised target for RRBs is now 20% of NBC.
- 2The RRB has met the Agriculture target of 18% of NBC, but has failed to meet the SMF target because the target for RRBs is 15% of NBC.
- 3The RRB has met the Agriculture target of 18% of NBC (requiring INR 90 crore) and has also met the SMF target of 10% of NBC (requiring INR 50 crore).✓
- 4The RRB has failed to meet the Agriculture target of 18% of NBC, but has met the SMF target of 10% of NBC.
Correct answer
The RRB has met the Agriculture target of 18% of NBC (requiring INR 90 crore) and has also met the SMF target of 10% of NBC (requiring INR 50 crore).
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