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      Question

      Small Finance Banks play an important role for financial

      inclusion. How much loans they have to extend to the priority sectors? 
      A 20% Correct Answer Incorrect Answer
      B 40% Correct Answer Incorrect Answer
      C 60% Correct Answer Incorrect Answer
      D 75% Correct Answer Incorrect Answer
      E 80% Correct Answer Incorrect Answer

      Solution

      The Reserve Bank of India (RBI) mandates the priority sector lending (PSL) target for Small Finance Banks (SFBs) at 60% (reduced from 75% earlier) of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher. 

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