Answer-Commercial bank credit to NBFCs for on-lending to priority sector is allowed up to _____ of the bank...

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Lending by commercial banks to NBFCs and lending by Small Finance Banks SFBs to NBFC-MFIs, for the purpose of on-lending to certain priority sectors, was permitted up to March 31, 2022.  To ensure continuation of the synergies that have been developed between banks and NBFCs in delivering credit to the specified priority sectors, RBI, in May 2022, has allowed the above facility on an on-going basis.    Bank credit to NBFCs including HFCs for On-Lending will be allowed up to a limit of five percent of individual banks total PSL .  In case of SFBs, credit to NBFC-MFIs and other MFIs Societies, Trusts, etc. which are members of RBI recognized Self-Regulatory Organisation of the sector, will be allowed up to an overall limit of 10 percen t of an individual banks total priority sector lending.

Commercial bank credit to NBFCs for on-lending to priority sector is allowed up to _____ of the bank’s total PSL, as per RBI regulations?

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