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    Question

    Which of the following statements regarding Priority

    Sector Lending (PSL) norms in India is incorrect?
    A Micro, Small and Medium Enterprises (MSME) sector is a part of the priority sector. Correct Answer Incorrect Answer
    B Lending to agriculture, including allied activities, is a major component of the priority sector. Correct Answer Incorrect Answer
    C Foreign banks with less than 20 branches are exempt from meeting Priority Sector Lending targets. Correct Answer Incorrect Answer
    D Social infrastructure loans, subject to certain limits per borrower, qualify under PSL. Correct Answer Incorrect Answer

    Solution

    The statement that Foreign banks with less than 20 branches are exempt from meeting Priority Sector Lending targets is incorrect. All foreign banks, regardless of their branch count, are subject to PSL targets in India.

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