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    Question

    What the NOT Correct about Priority Sector Lending

    (PSL)? i. Total PSL target is 40 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. ii. Target for Agriculture loans is 20 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. iii. Small Business, Education Loans, Housing Loans, Micro Credit also comes under PSL iv. Priority Sector Lending Certificates (PSLCs) are a mechanism to enable banks to achieve the priority sector lending target by purchase of these instruments in the event of shortfall.
    A Only i,ii & iii Correct Answer Incorrect Answer
    B Only i & iii & iv Correct Answer Incorrect Answer
    C Only ii Correct Answer Incorrect Answer
    D Only ii, iii & iv Correct Answer Incorrect Answer
    E All the above are true Correct Answer Incorrect Answer

    Solution

    Target for Agriculture loans is 18 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

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