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      Question

      Bank credit to NBFCs (including HFCs) for on-lending

      will be allowed up to what limit of an individual bank’s total priority sector lending in case of commercial banks?
      A 5% Correct Answer Incorrect Answer
      B 10% Correct Answer Incorrect Answer
      C 15% Correct Answer Incorrect Answer
      D 35% Correct Answer Incorrect Answer
      E 40% Correct Answer Incorrect Answer

      Solution

      Bank credit to NBFCs (including HFCs) for on-lending will be allowed up to an overall limit of 5 percent of an individual bank’s total priority sector lending in case of commercial banks

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