Question
Which of the following credit facility aimed to i
ncrease flow of credit to individuals for entrepreneurial activity in the non-farm sector , which is eligible under priority sector guidelines?Solution
Banks can issue General Credit Cards (GCC) for individuals/entities with working capital facilities for non-farm entrepreneurial activities, classified under priority sector lending. Under GCC, t here will be no ceiling on the loan amount as long as the loan is for the purpose of non-farm entrepreneurial activity and is otherwise eligible for classification as priority sector. The limits should be fixed on the basis of risk assessment .
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