Banking · Priority Sector Lending
Consider the following statements regarding Priority Sector Lending (PSL) targets for Small Finance Banks (SFBs) and Regional Rural Banks (RRBs): Statement I: Both SFBs and RRBs have an overall Priority Sector Lending target of 75% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure. Statement II: RRBs are allowed to count large corporate housing projects toward their priority sector targets. Statement III: SFBs must ensure that at least 50% of their loan portfolio constitutes loans and advances of up to ₹25 lakh. Which of the above statements is/are correct?
- 1I, II and III
- 2Only II and III
- 3Only I and III✓
- 4Only I
Correct answer
Only I and III
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