Banking · Priority Sector Lending
Under the Priority Sector Lending guidelines issued by the Reserve Bank of India, what is the specific sub-target assigned to Domestic Commercial Banks (excluding Regional Rural Banks and Small Finance Banks) for lending to Micro Enterprises, and how is this target calculated?
- 112 percent of total advances made to the priority sector in the previous financial year.
- 28 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is lower.
- 310 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
- 47.5 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.✓
Correct answer
7.5 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
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