Question
Which bank has been provided a relaxation of 3 years by
the Reserve Bank of India to comply with the priority sector lending norms though no relaxation is allowed for abiding by the cash reserve ratio and statutory liquidity ratio rules?Solution
The Reserve Bank of India (RBI) has given HDFC Bank three years to comply with the priority sector lending norms (PSL) following its merger with HDFC Ltd (HDFC), though no relaxation is allowed for abiding by the cash reserve ratio and statutory liquidity ratio rules. According to RBI norms, commercial banks need to extend 40 per cent of the adjusted net bank credit (ANBC) of the previous year towards the priority sector.
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