Question

Which of the following is instruments that enable banks to achieve their priority sector lending targets without actually disbursing loans to sectors outside their comfort zone? (STATI

Q: Answer-Which of the following is instruments that enable banks to achieve their priority sector lending tar...

Priority Sector Lending Certificates PSLCs are instruments that enable banks to achieve their priority sector lending targets without actually disbursing loans to sectors outside their comfort zone. PSL certificates allow banks sitting on surplus loans to a priority sector to sell certificates to banks that havent met their targets, pocketing a sizeable fee for this trade.