How many categories are there in Priority Sector Lending?
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How many categories are there in Priority Sector Lending?
As per the RBI circular released in 2016, there are eight broad categories of the Priority Sector Lending. They are: (1) Agriculture (2) Micro, Small and Medium Enterprises (3) Export Credit (4) Education (5) Housing (6) Social Infrastructure (7) Renewable Energy (8) Others.
Is PSL mandatory?
Public sector lending (PSL) is mandated by the Reserve Bank of India (RBI), making it a requirement for domestic and foreign banks to offer loans to specific sectors and sub-sectors within the nation’s economy.
What is Priority Sector Lending percentage?
The applicable target for lending to the non-corporate farmers for FY 2021-22 will be 12.73\% of ANBC or CEOBE whichever is higher. All efforts should be made by banks to reach the level of 13.5 percent of ANBC (erstwhile target for direct lending to agriculture sector).
Which banks are exempted from PSL?
RRBs, UCBs, LABs and foreign banks (including WoS) would be exempted from adjustments of weights in PSL achievement due to their currently limited area of operation/catering to a niche segment.
Why is PSL needed?
Understanding Priority Sector Lending (PSL) All sectors considered as a priority are able to easily access financial support like apply for loans that the banks are required to allot at a lower interest rate.
Who comes under PSL?
| Para No. | Particulars |
|---|---|
| CHAPTER – IV: MISCELLANEOUS | |
| 17. | Investments by Banks in Securitised Assets |
| 18. | Transfer of Assets through Direct Assignment /Outright Purchase |
| 19. | Inter Bank Participation Certificates (IBPCs) |
What is Anbc as per RBI?
For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] minus bills rediscounted with RBI and other approved Financial Institutions plus permitted non SLR bonds/debentures under Held to Maturity ( …
What do you mean by Anbc?
Technical definition of Adjusted Net Bank Credit (ANBC) is: It is the net bank credit plus investments made by banks in non-SLR bonds held in the held-to-maturity category or credit equivalent amount of off-balance-sheet exposure, whichever is higher.
Does health come under priority sector lending?
See Zee Business Live TV Streaming Below: Talking about the current rules for priority sector lending, he said currently if a bank lends up to Rs 10 crore for social infrastructure or health care facility then it will come under priority sector lending.