Master Directions – Priority Sector Lending (PSL) – Targets and Classification

Question 1

A higher weight i.e. ………… would be assigned to the incremental priority sector credit in the identified districts where the credit flow is comparatively lower i.e. per capita PSL less than

Answer 1

125%, ₹ 9000

Question 2

A lower weight i.e. ……. would be assigned for incremental priority sector credit in the identified districts where the credit flow is comparatively higher (per capita PSL greater than ………..

Answer 2

90%, ₹ 42,000

Question 3

Loans against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months will be subject to a limit up to …………… against NWRs/eNWRs and up to …………. against warehouse receipts other than NWRs/eNWRs will be considered to PSL in Agriculture

Answer 3

₹75 lakh, ₹50 lakh

Question 4

Farm Credit to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities will be ……………

Answer 4

Up to an aggregate limit of ₹2 crore per borrowing entity.

Question 4

Loans up to ………… per borrowing entity to FPOs/FPCs undertaking farming with assured marketing of their produce at a pre-determined price.

Answer 4

₹5 crore

Question 5

Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ……….. per borrower from the banking system.

Answer 5

₹100 crore

Question 6

Loans to co-operative societies of farmers for purchase of the produce of members (Not applicable to UCBs).

Answer 6

₹5 crore

Question 7

Loans to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that are engaged in agriculture and allied services.

Answer 7

₹50 crore

Question 8

Loans for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system.

Answer 8

₹100 crore

Question 9

Farmers with landholding of up to 1 hectare are called as …………..

Answer 9

Marginal Farmers.

Question 10

Farmers with a landholding of more than 1 hectare and up to 2 hectares ………….

Answer 10

Small Farmers

Question 11

Loans up to ………… to individuals solely engaged in Allied activities without any accompanying land holding criteria will be included as Small and Marginal farmers criteria

Answer 11

₹ 2 lakhs

Question 12

Lending to NBFC other than MFI for on-lending of ‘term lending’ component under agriculture will be allowed up to ₹ ……. per borrower and under MSE will be allowed up to ₹ ……..

Answer 12

10 lakh, 20 lakh

Question 13

……………………….. are eligible for classification under the subtarget of 7.5 percent prescribed for Micro Enterprises under priority sector

Answer 13

Khadi and Village Industries Sector (KVI)

Question 14

Education Loans to individuals for educational purposes, including vocational courses, not exceeding ₹ ……….. will be considered as eligible for priority sector classification

Answer 14

20 lakh

Question 15

Loans to individuals up to ₹ …… in metropolitan centres (with population of ten lakh and above) for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre does not exceed ₹…………

Answer 15

35 Lakhs, 45 lakhs

Question 16

Loans to individuals up to ₹………. lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit at other centres does not exceed ₹………..

Answer 16

25 lakhs, 30 Lakhs

Question 17

Loans up to ……….. in metropolitan centres and up to ……… in other centres for repairs to damaged dwelling units conforming to the overall cost of the dwelling unit.

Answer 17

₹10 lakh, ₹6 lakh

Question 18

Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to dwelling units with carpet area of not more than …… sq.m. will be considered as PSL under Housing category.

Answer 18

60

Question 19

Bank loans up to a limit of ………. per borrower for setting up schools, drinking water facilities and sanitation facilities including construction/ refurbishment of household toilets and water improvements at household level, etc

Answer 19

₹5 crore

Question 20

Bank loans up to a limit of ………… per borrower for building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI centres. In case of UCBs, the above limits are applicable only in centres having a population of less than one lakh.

Answer 20

₹10 crore

Question 21

Bank loans up to a limit of ……….. to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities, viz., street lighting systems and remote village electrification etc., will be eligible for Priority Sector classification.

Answer 21

₹30 crore

Question 22

Limit for Bank loans to individual households for purposes of renewable energy is ……….

Answer 22

₹10 lakh per borrower

Question 23

Loans not exceeding ………… provided by banks to SHG/JLG for activities other than agriculture or MSME, viz., loans for meeting social needs, construction or repair of house, construction of toilets or any viable common activity started by SHGs shall be considered as PSL

Answer 23

₹2.00 lakh

Question 24

Loans to distressed persons [other than distressed farmers indebted to noninstitutional lenders] not exceeding ……… per borrower to prepay their debt to non-institutional lenders shall be considered as PSL.

Answer 24

₹1.00 lakh

Question 25

Loans to Artisans, Village and Cottage Industries where individual Credit limit do not exceed ………… shall be considered as PSL under weaker sections.

Answer 25

₹1.00 lakh

Question 26

Bank credit to Housing Finance Companies (HFCs), approved by NHB for their refinance, for on-lending for the purpose of purchase/construction/ reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to an aggregate loan limit of ………….. per borrower will be considered as PSL

Answer 26

₹20 lakh

Question 27

The data on priority sector advances is required to be furnished by banks to …………… in RBI at quarterly and annual intervals.

Answer 27

FIDD, Central Office

Question 28

Banks having any shortfall in lending to priority sector shall be allocated amounts for contribution to the …………………………………. established with NABARD and other funds with NABARD/NHB/SIDBI/ MUDRA Ltd., as decided by the Reserve Bank from time to time

Answer 28

RIDF (Rural Infrastructure Development Fund)

Question 29

No loan related, and ad hoc service charges/inspection charges should be levied on priority sector loans up to …………….

Answer 29

₹25,000