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?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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