Question 1

Which category of banks has the highest Priority Sector Lending (PSL) target of 75% of ANBC?

Regional Rural Banks (RRBs) and Small Finance Banks (SFBs)Public Sector Banks onlyDomestic Scheduled Commercial BanksForeign Banks with 20 branches and above

View Explanation

RRBs and SFBs have a mandatory PSL target of 75% of their Adjusted Net Bank Credit (ANBC). Domestic commercial banks generally have a target of 40%.

Question 2

Under Priority Sector Lending, what is the target for "Small and Marginal Farmers" for domestic commercial banks (as of 2024)?

12% of ANBC8% of ANBC10% of ANBC18% of ANBC

View Explanation

Within the 18% target for Agriculture, a specific sub-target of 10% of Adjusted Net Bank Credit (ANBC) is mandated for Small and Marginal Farmers.

Question 3

PSL Certificates (PSLCs) can be traded on which platform?

Inter-bank Call Money Markete-Kuber platform of RBICCILNSE / BSE

View Explanation

PSLCs are traded on the RBI's CBS platform (e-Kuber). Banks buy/sell these certificates to meet their PSL targets without physically transferring the loans.

Question 4

For Foreign Banks with less than 20 branches in India, the Priority Sector Lending (PSL) target is:

32% of ANBC, specifically for exports.40% of ANBC, same as domestic banks.40% of ANBC, but up to 32% can be in the form of export credit.75% of ANBC.

View Explanation

Foreign banks with < 20 branches have a total PSL target of 40% of Adjusted Net Bank Credit (ANBC). However, they are treated differently regarding sub-targets; they can fulfill up to 32% of this target through Export Credit, which is not the case for domestic banks where export credit limits are much lower/specific.

JAIIB Quiz

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