RBI announced revised Priority Sector Lending norms for Regional Rural Banks considering the growing significance of RRBs in pursuit of financial inclusion agenda
1) The PSL target was increased to 75 percent of total outstanding from the existing 60 percent for RRBs.
2) Medium enterprises, social infrastructure and renewable energy were included under PSL category.
3) Agri-loans to individual farmers, for the purpose of PSL, was increased to 50 lakh rupees from the present 10 lakh rupees.
4) The RBI has lowered the quantum of loans against the earlier limit of 25 lakh rupees, loans to individuals up to 20 lakh rupees only are considered as PSL.
Which of the above statement (s) is/are incorrect?
RBI announced revised Priority Sector Lending norms for Regional Rural Banks considering the growing significance of RRBs in pursuit of financial inclusion agenda
1) The PSL target was increased to 75 percent of total outstanding from the existing 60 percent for RRBs.
2) Medium enterprises, social infrastructure and renewable energy were included under PSL category.
3) Agri-loans to individual farmers, for the purpose of PSL, was increased to 50 lakh rupees from the present 10 lakh rupees.
4) The RBI has lowered the quantum of loans against the earlier limit of 25 lakh rupees, loans to individuals up to 20 lakh rupees only are considered as PSL.
Which of the above statement (s) is/are incorrect?
The correct option is D None of these
The new guidelines add Medium Enterprises, Social Infrastructure and Renewable Energy under priority sector. The main areas under PSL are as follows:-
- Agriculture sector
- Small scale industries
- Small road and water transport operators.
- Professional and self- employed.
- Retail trade loan
- Education loan
- Housing loan
- Consumption loan (To weaker section of society)
- State – sponsored corporations for SC and STs.
- Software Industry & Venture Capital
Extra information:
- Agri-Loans: Loans to individual farmers, for the purpose of PSL, was increased to 50 lakh rupees from the present 10 lakh rupees against pledge/ hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months.
- Aggregate limit loan was doubled to 2 crore rupees per borrower in the case of loans, among others, to corporate farmers, farmers’ producers organisations/ companies of individual farmers, farmers partnership firms/ co-operatives engaged in agriculture and allied activities.
Housing Loans: The RBI has lowered the quantum of loans that will qualify as PSL. Against the earlier limit of 25 lakh rupees, loans to individuals up to 20 lakh rupees only are considered as PSL as per revised guidelines. Housing loans to banks’ own employees will be excluded from this limit.
None of these
The new guidelines add Medium Enterprises, Social Infrastructure and Renewable Energy under priority sector. The main areas under PSL are as follows:-
- Agriculture sector
- Small scale industries
- Small road and water transport operators.
- Professional and self- employed.
- Retail trade loan
- Education loan
- Housing loan
- Consumption loan (To weaker section of society)
- State – sponsored corporations for SC and STs.
- Software Industry & Venture Capital
Extra information:
- Agri-Loans: Loans to individual farmers, for the purpose of PSL, was increased to 50 lakh rupees from the present 10 lakh rupees against pledge/ hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months.
- Aggregate limit loan was doubled to 2 crore rupees per borrower in the case of loans, among others, to corporate farmers, farmers’ producers organisations/ companies of individual farmers, farmers partnership firms/ co-operatives engaged in agriculture and allied activities.
Housing Loans: The RBI has lowered the quantum of loans that will qualify as PSL. Against the earlier limit of 25 lakh rupees, loans to individuals up to 20 lakh rupees only are considered as PSL as per revised guidelines. Housing loans to banks’ own employees will be excluded from this limit.
