Question
Small Finance Banks play an important role for financial
inclusion. How much loans they have to extend to the priority sectors?ÂSolution
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.Â
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