Banking · Priority Sector Lending
How will a bank classify a ₹50,00,000 loan extended to a grain trading firm for regulatory reporting under Priority Sector Lending (PSL) guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1MSME Advance - Trading Sector Loan
- 2Indirect Agricultural Advance - Loans for Marketing of Crops✓
- 3Indirect Agricultural Advance - Loans for Cold Storage/Warehouses
- 4Direct Agricultural Advance - Short-Term Production Credit
Correct answer
Indirect Agricultural Advance - Loans for Marketing of Crops
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