Current Affairs · Banking Regulations
Under the Priority Sector Lending (PSL) guidelines, what is the cap on bank credit to NBFCs (including MFIs) for the purpose of on-lending to the priority sector?
- 1There is no longer a cap on on-lending to NBFCs to ensure maximum credit flow.
- 220 percent of the bank's Adjusted Net Bank Credit (ANBC).
- 35 percent of the bank's total PSL of the previous financial year.✓
- 410 percent of the bank's total PSL of the previous financial year.
Correct answer
5 percent of the bank's total PSL of the previous financial year.
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