Economics · Economy
Under the Reserve Bank of India's revised guidelines for Priority Sector Lending (PSL), a scheduled commercial bank is evaluating its targets for Agriculture Finance. Which of the following categories of credit flow would NOT be eligible to be classified under the sub-target designated for Small and Marginal Farmers?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Loans to corporate farmers, partnership firms, and institutions directly engaged in agriculture where the total sanctioned limit for the project exceeds 2 crore rupees regardless of landholding size.✓
- 2Loans to Farmer Producer Organizations (FPOs) where the membership of small and marginal farmers is not less than 75 percent.
- 3Loans to landless agricultural laborers, tenant farmers, oral lessees, and sharecroppers for their own agricultural activities.
- 4Loans to individual farmers with landholding up to 1 hectare (marginal) and more than 1 hectare up to 2 hectares (small).
Correct answer
Loans to corporate farmers, partnership firms, and institutions directly engaged in agriculture where the total sanctioned limit for the project exceeds 2 crore rupees regardless of landholding size.
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