Economics · Economy

The effectiveness of Priority Sector Lending (PSL) is often debated. Which of the following statements accurately reflect the sub-targets for Agriculture and Weaker Sections for Scheduled Commercial Banks (SCBs) (excluding RRBs and SFBs)? 1. The sub-target for lending to the Agriculture sector is mandated at 18 percent of ANBC or CEOBE, whichever is higher, to be achieved by all SCBs. 2. Within the 18 percent Agriculture target, a further sub-limit of 10 percent of ANBC or CEOBE has been specified for Small and Marginal Farmers. 3. The overall sub-target for the Weaker Sections category is set at 12 percent of ANBC or CEOBE, to be achieved in a phased manner by March 31, 2024. 4. Failure to meet the PSL targets, including sub-targets, may result in penal interest being levied on the shortfall and transfer of funds to the Rural Infrastructure Development Fund (RIDF) of NABARD.