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    Question

    The Priority Sector Lending (PSL) target for Small

    Finance Banks has been revised to ______ from FY2025-26 onwards by RBI.  
    A 40% Correct Answer Incorrect Answer
    B 20% Correct Answer Incorrect Answer
    C 60% Correct Answer Incorrect Answer
    D 35% Correct Answer Incorrect Answer
    E 75% Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) has reduced the priority sector lending (PSL) target for Small Finance Banks (SFBs) from 75% to 60% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher .  This change, effective from the financial year 2025-26, is aimed at providing SFBs with more flexibility in their lending operations.   

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