Banks mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as [IBPS 2013]

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Banks’ mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as [IBPS 2013]

A	Para banking
B	Sub-prime lending
C	Retail lending
D	Priority sector lending

Explanation:

Detailed explanation-1: -Targets for priority sector lending by Primary (Urban) Co-operative Banks (UCBs) Advances to Weaker Sections-12 per cent# of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

Detailed explanation-2: -Within the 18 per cent target for agriculture, a target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal Farmers. 18 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

Detailed explanation-3: -Priority Sector Lending is lending to the weaker sections of society like women, small farmers, small shopkeepers and SC & ST community.

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