Question
Which of the following Statements about Priority Sector
Lending is/are True? I- PSL norms are decided by the RBI after discussion with the Cabinet Secretary II- All education loans are part of PSL in India. III- RRBs, Cooperative Bank & SFBs are exempted from PSL norms.Solution
PSL in Education Loans- Education loans include loans and advances granted to only individuals for educational purposes up to Rs. 10 lakhs for studies in India and Rs. 20 lakhs for studies abroad, and do not include those granted to institutions. Regional rural banks, co-operative banks and small finance banks have to allocate 75% of total Credit to PSL.
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