Question
For the small finance banks, ____________ of the
Adjusted Net Bank Credit should be towards the priority sectors as identified by the RBI.Solution
Small Finance Banks have been established in India as per the approval given by the Reserve Bank of India in order to achieve financial inclusion. Such banks have to extend at least 75 percent of the ANBC to the priority sectors only. Loans upto Rs 25 lakhs extended to the micro enterprises should constitute at least 50% of the total credit portfolio of such banks.Ā
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