BANKING AFFAIRS

Detailed explanation-1: -Query 30: Whether PSLCs can be issued for a limited period i.e., for one reporting quarter and multiples thereof? Clarification: The duration of the PSLCs will depend on the date of issue with all PSLCs being valid till end of FY i.e. March 31st and expiring on next day i.e. April 1st.

Detailed explanation-2: -ix) Expiry date: All PSLCs will expire by March 31st and will not be valid beyond the reporting date (March 31st), irrespective of the date it was first sold. x) Settlement: The settlement of funds will be done through the platform as explained in the e-Kuber portal.

Detailed explanation-3: -Priority sector lending certificates (PSLCs) are certificates that are issued against priority sector loans for banks. They allow banks to meet their targets and sub-targets – when it comes to priority sector lending – by buying the instruments. The banks use PSLCs to guard against shortfalls.

Detailed explanation-4: -Loans to individuals for educational purposes, including vocational courses, not exceeding Rs 20 lakh will be considered as eligible for priority sector classification.