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.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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