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    Question

    What is the revised Priority Sector Lending (PSL) target

    for Urban Cooperative Banks (UCBs) as per 2025 guidelines?  
    A 40% of ANBC or CEOBE Correct Answer Incorrect Answer
    B 50% of ANBC or CEOBE Correct Answer Incorrect Answer
    C 60% of ANBC or CEOBE Correct Answer Incorrect Answer
    D 65% of ANBC or CEOBE Correct Answer Incorrect Answer
    E 75% of ANBC or CEOBE Correct Answer Incorrect Answer

    Solution

    Explanation:  
    Urban Cooperative Banks previously had to meet a 75% PSL target . In the 2025 revision, the RBI reduced this to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher . This change recognizes UCBs’ capacity constraints while still mandating significant credit flow to priority sectors.    

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