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    Question

    RBI allows banks to achieve the priority sector lending

    target and sub-targets by purchase of these some instruments in the event of shortfall and at the same time incentivize the surplus banks. What are these instruments called?
    A Priority Sector Lending Bond (PSLB) Correct Answer Incorrect Answer
    B Priority Sector Lending Certificate (PSLC) Correct Answer Incorrect Answer
    C Priority Sector Lending Security (PSLS) Correct Answer Incorrect Answer
    D Priority Sector Lending Instrument (PSLI) Correct Answer Incorrect Answer
    E Priority Sector Lending Paper (PSLP) Correct Answer Incorrect Answer

    Solution

    Priority Sector Lending Certificates (PSLC) are issued by the banks having excess loans under PSL to sell them to those banks who have shortfall. The PSLCs are traded through the CBS portal (e-Kuber) of RBI

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