What is Priority Lending : Lending to those sectors of the economy which

should receive timely and adequate credit.

GOI AND RBI consider as important for the development of basic needs of
country.

PURPOSE : Better credit flow to credit deficient areas/required areas like

SF/MF/WEAKER SECTION . Boost credit in important areas like Renewable
energy/Social infrastructure .

Advantage of Priority Lending : Better credit penetration to credit

deficient areas and increase loans to SF/MF/Weaker sections/ Renewable
energy/Social infrastructure. (which enabled over all development of our
country, exports, employment etc.,)

What is Non-priority : CAR loan

KNOWLEDGE CHECK (Let u see)

 PRIORITY
 A service enterprise with investment of Rs 1 Cr in
Equipments and turnover of Rs 7.50 crs will be
classified as

 1) Small
 2) Micro
 3) Mudra
 4) Medium
 5) Tiny unit
 As per the revised definition of MSMEs as per latest
Gazette Notification S.O. 2119 (E) dated June 26,
2020, If the Investment in Plant & Machinery or
Equipment does not exceed 50 Cr and turnover
does not exceed 250 Cr; the enterprise will be
classified as __________

 1) Small
 2) Micro
 3) Mudra
 4) Medium
 5) Tiny unit
 As per the revised definition of MSMEs as per
latest Gazette Notification S.O. 2119 (E) dated
June 26, 2020, If the Investment in Plant &
Machinery or Equipment does not exceed 1 Cr
and turnover does not exceed 5 Cr; the
enterprise will be classified as __________

1) Small
2) Micro
3) Mudra
4) Medium
5) Tiny unit
Under Social Infrastructure ,Bank loans up to a limit of
₹……….per borrower for setting up schools, drinking water
facilities and sanitation facilities including construction/
refurbishment of household toilets and water improvements
at household level, etc

1) 5 MILLION
2) 50 MILLION
3) 500 MILLION
4) 5 BILLION
5) 5 TRILLION

LET US KNOW THE DIFFERENCE BETWEEN

MILLION/BILLION/TRILLION- TO ANSWER PERFECTLY
PRIORITY (LOGICS)

6 9 12
 PRIORITY (LOGICS)

6 zeros- Million
9 zeros- Billion
12 zeros- Trillion
Under Social Infrastructure ,Bank loans up to a limit of
₹……….per borrower for setting up schools, drinking water
facilities and sanitation facilities including construction/
refurbishment of household toilets and water improvements
at household level, etc

1) 5 MILLION
2) 50 MILLION
3) 500 MILLION
4) 5 BILLION
5) 5 TRILLION
HOW TO ANSWER : if Answer is 5 crores.
WRITE : 6/9/12 –mil/bil/tril
Now covert 5 crores –(5 + 00,00,000 zeros)-
NOW 50 (000,000-MILLION)
50 million is Answer.
 BEFORE GETTING INTO PRIORITY TOPIC,
LET US UNDERSTAND SOME TERMINOLOGIES

ANBC

CEOBE

RETAIL AGRICULTURE (ALLIED ACTIVITIES) & MSME

LOANS TO MFG
INVIDUAL
CUSTOMERS
SERVICE

TRADER
AS PER RBI PRIORITY TARGET IS
 40 % OF ANBC OR CEOBE (WHICH EVER IS HIGHER).

 WHAT IS ANBC (FUND BASED LOANS) – NEXT SLIDES

 WHAT IS CEOBE (NON FUND BASED LOANS)

 CEOBE STANDS FOR Credit Equivalent of Off-Balance Sheet Exposures

 Example : BANK BALANCE SHEET

LIABILITIES ASSETS
DEPOSITS – 1400 CRORES LOANS – 500 crores

FOOT NOTE : LETTER OF CREDIT – 2OO CR & BANK GUARANTEE– 400 CR.

 ANBC = 500 CR (40%) OR 600 CR (40%)

 200 CR OR 240 CR (HIGHER WILL BE TARGET)- 240 CR

 Calculation of ANBC:
Bank Credit in India 1
Bills Rediscounted with RBI and other approved Financial Institution 2
Net Bank Credit (NBC)* (1-2) = 3
Outstanding Deposits under RIDF and other eligible funds with NABARD, 4+
NHB, SIDBI and MUDRA Ltd in lieu of non-achievement of priority sector
lending targets/sub-targets + outstanding PSLCs
Eligible amount for exemptions on issuance of long-term bonds for 5-
infrastructure and affordable housing
Advances extended in India against the incremental FCNR (B)/NRE 6-
deposits, qualifying for exemption from CRR/SLR requirements
Investments made by public sector banks in the Recapitalization Bonds 7-
floated by Government of India
Other investments eligible to be treated as priority sector (e.g. 8+
investments in securitised assets
Face Value of securities acquired and kept under HTM category Under 9-
the TLTRO 2.0 and SLF-MF and also extended regulatory benefits under
SLF-MF
Bonds/debentures in Non-SLR categories under HTM category 10 +
III+IV- (V+VI+VII)+VIII-IX+X ANBC
 .
 REWRITE ANBC TO REMEMBER

 AS PER RBI PRIORITY TARGET IS 40 % OF ANBC OR

CEOBE (WHICH EVER IS HIGHER)
 Calculation of ANBC (REWRITE)
Bank Credit in India 1
Bills Rediscounted with RBI and other approved Financial Institution 2 DEDUCT
Net Bank Credit (NBC)* (1-2) = 3
Outstanding Deposits under RIDF and other eligible funds with NABARD, ADD
NHB, SIDBI and MUDRA Ltd in lieu of non-achievement of priority sector
lending targets/sub-targets + outstanding PSLCs
Other investments eligible to be treated as priority sector (e.g. ADD
investments in securitised assets
Bonds/debentures in Non-SLR categories under HTM category ADD
Eligible amount for exemptions on issuance of long-term bonds for DEDUCT
infrastructure and affordable housing
Advances extended in India against the incremental FCNR (B)/NRE DEDUCT
deposits, qualifying for exemption from CRR/SLR requirements
Investments made by public sector banks in the Recapitalization Bonds DEDUCT
floated by Government of India
Face Value of securities acquired and kept under HTM category Under DEDUCT
the TLTRO 2.0 and SLF-MF and also extended regulatory benefits under
SLF-MF
ANBC
 COMPLIANCE - Monitored on ‘Quarterly’ Basis

 Priority data to be furnished to :

 FIDD, Central Office ,RBI @

 Quarterly (15 days) and

 Annual intervals (with in a month)

 RRBs ………TO……NABARD (QUARTERLY AND ANNUAL)

 Based on Iinvestment in

P&M
MFG ( INVESTMETN IN P & M)

OR

SERVICE (INVEST IN EQUIPMENT

Equipment
T/O
Does not exceed MULIPLY WITH DOES NOT
5 EXCEED
1 CRORE MICRO 5 CRORES
10 CRORES SMALL 50 CRORES
50 CRORES MEDIUM 250 CRORES

16
 PRIORITY APPLICABLE TO WHICH BANKS :
RBI (ISSUE PRIORITY GUIDELINES)

COMMERCIAL FOREIGN
BANKS BANK WITH
& LESS THAN RRB SFB UCB
FOREIGN 20
BANK ABOVE BRANCHES
20 BRANCHES
 CATEGORIES UNDER PRIORITY SECTOR
 R A M
R
E A M
T G S
A R M
I I E
L

RETAIL Social Renewable OTHERS

AGRICULTURE MSME EXPORT Infrastructure Energy

EL HL
 TOTAL TARGER UNDER PRIORITY BANKS TO FINANCE
RBI (ISSUE PRIORITY GUIDELINES)

COMMERCIAL FOREIGN
BANKS BANK WITH UCB
& LESS THAN 40 % BY
FOREIGN BANK RRB SFB
20 2020
ABOVE 20 BRANCHES
BRANCHES

40 % BY
40 % OF 40 % OF 75 % OF 75 % OF 45% BY 2
ANBC OR ANBC OR ANBC OR ANBC OR 50% BY 2
CEOBE CEOBE CEOBE CEOBE 60% BY 2
(HIGHER) (HIGHER) (HIGHER) (HIGHER) 75% BY 2
 RBISF ((1-2 HEC) PRIORITY SECTOR SUB TARGETS)
LANDLESS/ORAL/TENANT
SHG/JLG-AGRI/ALLIED COMM BANKS &
LOAN-2 LAC FOR ALLIED ACT FB > 20 BR SUB TARGET
LOAN TO FPO/FPC- LAND 40 % of ANBC OR
HOLDING NOT LESS THAN 75% MICRO
CEOBE (HIGH) 7.5% of ANBC
2021 - 8 % & 2022 – 9 %
2023 – 9.5% 2024 - 10 % HL-MET (45L/35 L)
HL-OTH (30L/25L)
RETAIL HL REPAIR-10L/6L SF/MF 2021- 10 %
EL (20 LACS) SC/ST 2022 – 11%
AGRICULTURE DIR 2023 - 11.5 %
NON-COR-13.78% BY 2023 18 % of ANBC SHG 2024 – 12 %
PMJDY
Persons with disabilities
MSME
MSME- Govt Spon NRLM, NULM & SRMS
PRIORITY
Minorities (TARGET 15 %)
 Distressed farmers indebted to
WEAKER non-institutional lenders
WEAKER SEC
SECTION  Distressed persons up to loan
12 % of ANBC
10 % to 12 % ₹1 lakh)
Women beneficiaries up to ₹1
INCREMENTAL 2 % ANBC lakh
EXPORT SANCTION LIM – 40CR Artisans, village and cottage
industries upto ₹1 lakh
 RBI (PRIORITY SECTOR SUB TARGETS)

FB < 20 BR RRB SFB

40 % of ANBC OR 75 % of ANBC OR
CEOBE (HIGH) 75 % of ANBC OR
CEOBE (HIGH) CEOBE (HIGH)
NO SPECIFIC
RETAIL TARGET

18 % of ANBC 18 % of ANBC
AGRI NO SPECFIC TARGET (MF/SF 8 % to 10 %
(MF/SF 8 % to 10 %

MSM- PRIORITY MSM - PRIORITY

MSME- NO SPECFIC TARGET (MICR0 7.5%) MICR0 7.5%

WEAKER NO SPECIFIC WEAKER SEC WEAKER SEC

SECTION TARGET 15 % of ANBC 12 % of ANBC
10 % to 12 %

32 % OF
EXPORT
ANBC/CEOBE
 PRIORITY OVER ALL VIEW OF ALL BANKS
(QUICK GLANCE)
 TOTAL PRIORITY TARGET
 40 % - COMMERCIAL BANKS & FB (ANY BRANCHES)
 75 % -RRB & SFB
 40% TO 75 % - PRIM CO-OP URBAN BANK
 FOREIGN BANK LESS THAN 20 BRANCHES : EXPORT 32% & OTHER 8 %

 AGRICULTURE :18 % FOR ALL (NOT APPLICABLE TO FOREIGN BANK<20 BR)

 MF/SF : 8 % TO 10 % INCREASE FOR ALL BANKS (NA TO FB < 20 BR)

 MICRO – 7.5 % FOR ALL (NA TO FB < 20 BR)

 WEAKER SECTION – 12 %-(BUT FOR RRB- 15 %) – NA TO FB <20 BRANCH

 OTHER FINANCES TO MSMEs

All loans to units in the KVI sector will be eligible for

classification under the sub-target of 7.5 % prescribed
for Micro Enterprises under priority sector.

 Loans up to Rs. 50 Crore to Start-ups, as per definition

of Ministry of Commerce and Industry, Govt. of India,
that confirm to the definition of MSME, are eligible to
be classified under Priority Sector

 CREDIT OUTSTANDING UNDER GCC (ARTISAN CREDIT

CARD/LUCC/SWAROJGAR CREDIT CARD & WEAVERS
CREDIT CARD)

 PMJDY OUTSTANDING

 OUTSTANDING DEPOSIT WITH SIDBI/MUDRA

 AGRICULTURE ( 3 CATEGORIES)

FARM CREDIT
Agriculture Infrastructure
Ancillary activities

 LET US UNDERSTAND THESE

3 CATEGORIES
 FARM CREDIT (2 PARTS)
(PART A)

 Loans to individual farmers [including SHG or JLG]

 Proprietorship firms of farmers (Directly engaged in Agriculture and
Allied Activities, viz., Dairy, fishery, animal husbandry, poultry, bee-
keeping and sericulture.

 CROP LOANS/ SF/MF/PLANTATION/HORTICULTURE

 Medium and Long-term loans to farmers for AGCL and allied activities
 Loans to farmers for pre and post-harvest activities
 Loans to farmers against pledge/ hypothecation of agricultural produce
(including warehouse receipts) for a period not exceeding 12 months
subject to a limit up to Rs. 75 lakh against NWRs/eNWRs & upto Rs 50
lakh against warehouse receipts other than NWRs/eNWRs
 Loans to distressed farmers indebted to NON institutional lenders
 Loans under the Kisan Credit Card Scheme
 Loans to SF/MF for purchase of land for Agriculture purpose
 Loans to farmers for installation of stand-alone Solar Agriculture Pumps
and for solarisation of grid connected Agriculture Pumps
 Loans to farmers for installation of solar power plants on barren/fallow
land or in stilt fashion on agriculture land owned by farmer.
 FARM CREDIT (2 PARTS)
(PART B)
 Loans to Corporate farmers,
 FPO / FPC Companies of individual farmers,
Partnership firms and
Co-operatives of farmers directly engaged in Agcl and Allied Activities

a) Loans for the following activities will be subject to an aggregate limit of Rs. 2
crore per borrowing entity

i) Crop loans to farmers/Horticulture and loans for allied activities.

ii) Medium and Long-term loans to farmers for agriculture and allied activities
(e.g. purchase of agricultural implements and machinery and developmental loans
for allied activities).
iii) Loans to farmers for pre and post-harvest activities,

b) Loans up to Rs. 5 Cr per borrowing entity to FPOs/FPCs undertaking farming with

assured marketing of their produce at a pre-determined price.

c) Loans to farmers against pledge/ hypothecation of agricultural produce (including

arehouse receipts) for a period not exceeding 12 months subject to a limit up to Rs.
75 lakh against NWRs/eNWRs & upto Rs 50 lakh against warehouse receipts other
than NWRs/eNWRs

 UCBs are not permitted to lend : CO-operative of farmers

 Agriculture Infrastructure

Aggregate sanctioned limit of Rs.100 crore per borrower

from the banking system
 Loans for construction of storage facilities (Warehouses,
market yards, godowns and silos including cold storage units/
cold storage chains designed to store agriculture
produce/products) irrespective of their location.
 Soil conservation and watershed development.
 Plant tissue culture and agri-biotechnology,
 Seed production, production of bio-pesticides, bio-fertilizer,
and vermi composting.
 Loans for construction of oil extraction/ processing units for
production of bio-fuels, their storage and distribution infrastructure
along with loans to entrepreneurs for setting up Compressed Bio Gas
(CBG) plants
Ancillary activities :
Loans up to Rs.5 CR to co-operative societies of farmers for disposing of the
produce of members.

Loans up to Rs. 50 crore to Start-ups, as per definition of Ministry of Commerce

and Industry, Govt. of India that are engaged in agriculture and allied services

Loans for setting up of Agriclinics and Agribusiness Centres.

Loans for Food and Agro-processing up to an aggregate sanctioned limit of

Rs.100 crore per borrower from the banking system.

 Bank loans to Primary Agricultural Credit Societies (PACS),

 Farmers’ Service Societies (FSS) and
 Large-sized Adivasi Multi-Purpose Societies (LAMPS)
 for on-lending to agriculture

 Loans sanctioned by banks to MFIs/NBFC MFIs for on-lending

 Loans sanctioned by banks to NBFCs (other than MFI) for on-lending to ‘Term
lending’ component under Agriculture up to Rs.10 lakh per borrower

 Outstanding deposits under RIDF and other eligible funds with NABARD
KNOWLEDGE CHECK :

Loans up to Rs.5 CR to co-operative societies of farmers for disposing of

the produce of members is falling under which category of agriculture

A) Farm Credit
B) Agriculture Infrastructure
C) Ancillary activities
D) Allied activities
 LENDING BY BANKS TO NBFCS AND MFIS FOR ON-LENDING :

 (MAXIMUM CAP ON LENDING TO NBFCs – 5% of banks priority

 Agriculture: ‘Term lending’ component under Agriculture will be

allowed up to ₹ 10 lakh per borrower.
 (NOT APPLICABLE to RRB/UCB/SFB/LAB)

Micro & Small enterprises: On-lending by NBFC will be allowed up

to ₹ 20 lakh per borrower.

HFC : 20 Lac per borrower.

 EDUCATION

 Loans to individuals for ducational purposes,

including vocational courses, not exceeding Rs. 20
lakh. Loans currently classified as priority sector
will continue till maturity.
 HOUSING LOAN (Employees-NP)
HOUSING LOAN : (METRPOLITAN : 10 lacs and above population )

 METRO : PROJECT COST : 45 Lacs

 LOAN : 35 lacs

 OTHER THAN METRO- PROJECT COST : 30 lacs

 LOAN : 25 lacs

 HOUSING REPAIRS :
 Loans up to Rs. 10 lakh in metropolitan centres &
 Up to Rs. 6 lakh in other centres
.
Bank loans to any governmental agency for construction of dwelling
units or for slum clearance and rehabilitation of slum dwellers
subject to dwelling units with carpet area of not more than 60 sq.m
Bank loans to affordable Housing projects using at least 50% of FAR/FSI for dwelling
units with carpet area of not more than 60 SQ meter
 Outstanding deposit with NHB on account of priority short fall
 EXPORT CREDIT:

Incremental Export Credit : 2 % of ANBC or CEOBE (Higher)

subject to Sanctioned limit of Rs.40 crore per borrower
 Social Infrastructure : Bank loans of Rs. 5 crore per
borrower for setting up schools, drinking water facilities
and sanitation facilities including construction/
refurbishment of household toilets and water
improvements at household level, etc.
 Rs. 10 crore per borrower for building health care
facilities including under ‘Ayushman Bharat’ in Tier II to
Tier VI centres.

 Loans up to Rs. 50 Crore to Start-ups,

 PRIORITY SECTOR LOANS UP TO ₹25,000 : NO CHARGES


 Renewable Energy : Bank loans up to a limit of Rs 30 Crore to
borrowers for purposes like

 Solar based power generators,

 Biomass-based power generators

 Wind mills,

 micro-hydel plants and for nonconventional energy based

public utilities, viz., street lighting systems and remote village
electrification etc., are eligible for Priority Sector Classification.

 For individual households, the loan limit is Rs. 10 Lakh per

borrower
 OTHER LOANS

 Loans not exceeding Rs. 2.00 lakh provided directly by banks to

SHG/JLG

 for activities other than agriculture or MSME,

 viz., loans for meeting social needs, construction or repair of house,

construction of toilets or any viable common activity started by the
SHGs

 Loans to distressed persons [other than distressed farmers indebted to

non-institutional lenders] not exceeding Rs.1 lac per borrower to
prepay their debt to non-institutional lenders.

 Loans sanctioned to State Sponsored Organisations for SC/ST s for the

specific purpose of purchase and supply of inputs and/or the marketing
of the outputs.

 Loans up to Rs.50 crore to Start-ups, that are engaged in activities

other than Agriculture or MSME.
Bank loans to MFIs for on-lending (NBFC-MFI, SOCIETY & TRUST)
(NOT APPLICABLE to RRB/UCB/LAB)
75 % QUALIFYING ASSETS (167/22) = INCOME GENERATING ACTICVITY – 50 %

Qualifying asset means :

 Collateral-free loan given to a household having annual household income up to

Rs.3 lakh irrespective of areas. (HO CIR 167/22)
 Household mean : An Individual family unit, i.e., husband, wife & their
unmarried children.

 Loan does not exceed Rs.75,000/- in the first cycle

 and Rs.125,000/- in the subsequent cycles.

 Total indebtedness of the borrower does not exceed Rs. 1,25,000/-Education and
medical expenses will be excluded while arriving at the total indebtedness of a
borrower.
 Tenure of the loan not to be less than 24 months for loan amount in
excess of Rs. 30,000 with prepayment without penalty.

 The loan is without collateral.

 Loan is repayable by weekly, fortnightly or monthly installments at the

choice of the borrower.

 Processing fee not exceeding 1 % the gross loan amount

 Margin cap: The margin cap should

 Not exceed 10 %for MFIs having loan portfolio exceeding Rs.100 Cr
 and 12 % for others.

 NBFCs extending loans to its total assets : Maximum limit on microfinance loans
for NBFCs now stands revised to 25 % of the total assets. (HO CIR 167/22)
 NEW IN PROIORITY : (VALID TILL 2023-24)
 To address Regional disparities in the flow of priority sector credit
at the district level
 Based on per capita credit flow.

 Per capita credit flow meaning : For example in a District 1 lac

people are there. Total PSL loans given are Rs 50 crores.
 Now 50 crores priority loans divided by 1 LAC POPULATION = Rs 5000

 Now RBI SAYS : from FY 2021-22 onwards, a higher weight

 125%- Incremental priority sector credit -Identified districts – where

credit flow is comparatively lower (per capita PSL less than ₹6000)

 90 % lower weight - identified districts –where credit flow is
comparatively higher (per capita PSL greater than ₹25,000)

 OTHER DISTRICTS – 100 % WEIGHTAGE

 PRIORITY
 COVID 19 MEASURES FOR PSL

Liquidity window of RS 50000 CR with tenor of 3 years

@ repo rate till 31.3.22 for Covid health care INFRA

Liquidity window of RS 15000 CR with tenor of 3 years

@ repo rate till 31.3.22 for Hotel, Restaurant,
tourism, travel agents, tour operators etc
 PRIORITY

 PSLC CERTIFICATES (NO Transfer of Risk or Loan) :

 CBS PORTAL- e-KUBER – Rs 25 lacs and Multiples of Rs 25 lacs

 4 type of PSLC CERTIFICATES

 PSLC GENERAL : (COUNTING FOR OVERALL)

 PSLC-AGRICULTURE (COUNTING FOR AGCL AND OVERALL)
 PSLC - SF/MF (COUNTING FOR SF/MF & OVERALL)
 PSLC-MICRO ENTERPRISES (COUNTING FOR MICRO & OVERALL)
 PRIORITY
NON ACHIEVEMENT
 RIDF (RURAL INFRASTRUCTURE DEVELOPMENT FUND)
OF NABARD

 OTHER FUNDS
 NABARD
 NHB
 SIDBI
 MUDRA LTD AS DECIDED BY RBI

 ROI & TENURE OF WILL BE DECIDED BY RBI

 Terminal Questions

What is the total Priority sector target to be achieved

by Domestic Commercial banks

 1) 40% 2) 32% 3) 10% 4) 75% 5) 18%

Answer is 40%
 Terminal Questions

In the total Priority sector target how much is to be

achieved towards Agriculture by Domestic Commercial
banks
 1) 40% 2) 32% 3) 10% 4) 75% 5) 18%

Answer is 18%
 Terminal Questions

In the total Priority sector target how much is to be

achieved towards Advances to weaker section by
Domestic Commercial Banks

1) 40% 2) 12% 3) 10% 4) 75% 5) 18%

Answer is 12%
 Terminal Questions

What is the maximum amount can be financed under

NWR under Produce loans (Rs. In lakhs)?

1) 25 2) 45 3) 75 4) 50 5) 30

Answer is 50 lakhs
 Terminal Questions

What is the maximum amount under education loan to

be classified under priority sector (Rs. In lakhs)?

1) 25 2) 20 3) 75 4) 50 5) 30

Answer is 20 lakhs
 Terminal Questions
Lending to startups up to ₹_____ Cr per borrower can
be classified under Priority sector

1) 25 2) 20 3) 75 4) 50 5) 30

Answer is 50 Crores
 Terminal Questions
Lending to Distressed farmers up to ₹_____ lakh per
borrower can be classified under Priority sector

1) 4
2) 3
3) 6
4) 2
5) 1
Answer is 1 lakh
 Terminal Questions
Loans for Food and Agro-processing up to an aggregate
sanctioned limit of Rs.100 crore per borrower can be
classified under
1) Farm credit
2) Ancillary activity
3) AGRICULTURE INFRASTRUCTURE
4) MSME
5) Others

Answer is Ancillary activity

 Terminal Questions
Monitoring of priority lending compliance of banks by
RBI is done on _______ basis

1) Monthly
2) Quarterly
3) Half yearly
4) Annually

Answer is Quarterly
 Terminal Questions
Loans for Food and Agro-processing up to an aggregate
sanctioned limit of Rs. --------- Cr per borrower can be
classified under Priority sector

1) 25
2) 50
3) 75
4) 100

Answer is 100
 Terminal Questions
______per borrower for building health care
facilities including under ‘Ayushman Bharat’ in
Tier 2 to Tier 6 centres
1) 1 Crore
2) 2 Crores
3) 5 Crores
4) 10 crores

Answer is 10 Crores
 Terminal Questions
No processing charges to be collected for priority
sector loans upto Rs.______
1) 10,000
2) 25,000
3) 50,000
4) 1 lakh

Answer is 25,000
 Terminal Questions
 Bank loans to any governmental agency for
construction of dwelling units or for slum clearance
and rehabilitation of slum dwellers subject to
dwelling units with carpet area of not more than __
sq.m

1) 40
2) 50
3) 60
4) 75

Answer is 60
 Terminal Questions
 Maximum limit on microfinance loans for NBFCs
now stands revised to ___of the total assets.

1) 25 %
2) 50 %
3) 60 %
4) 75 %

Answer is 25%
 Terminal Questions
 MAXIMUM CAP ON LENDING TO NBFCs ___ of
banks priority

1) 5 %
2) 10 %
3) 15 %
4) 20 %

Answer is 5%
 Terminal Questions
 If Banks does not ACHIEVE Priority sector target,
The deficit amount is not to be invested in _____

1) RIDF of NABARD
2) NHB
3) SIDBI
4) MUDRA LTD
5) HFC

Answer is HFC
 Terminal Questions
 Loans to farmers against pledge/ hypothecation
of agricultural produce (including warehouse
receipts) for a period not exceeding __ months
will be classified under priority sector target

1) 18 months
2) 12 months
3) 6 months
4) 24 months

Answer is 12 months
 Terminal Questions
 Incremental Export Credit : 2 % of ANBC or
CEOBE (Higher) subject to Sanctioned limit of
______per borrower will be classified under
priority sector target

1) Rs.10 crore
2) Rs.20 crore
3) Rs.30 crore
4) Rs.40 crore

Answer is Rs.40 crore

 Terminal Questions
 Loans up to Rs. ___ Cr per borrowing
entity to FPOs/FPCs undertaking farming
with assured marketing of their produce
at a pre-determined price under FARM
CREDIT

1) Rs.1 crore
2) Rs.2 crore
3) Rs.5 crore
4) Rs.10 crore

Answer is Rs.5 crore

 Terminal Questions
Bank loans up to a limit of Rs ____to borrowers
for purposes like Solar based power generators,
Biomass-based power generators Wind mills etc
comes under renewable energy category of
Priority sector.

1) Rs.10 crore
2) Rs.20 crore
3) Rs.30 crore
4) Rs.40 crore

Answer is 30 Crore
 Terminal Questions
In priority sector, Qualifying asset means :
 Collateral-free loan given to a household having
annual household income up to Rs……..lakh
irrespective of areas.
1) Rs.1 lakh
2) Rs.2 lakh
3) Rs.3 lakh
4) Rs.5 lakh

Answer is Rs.3 lakh