BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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50%
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75%
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40%
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80%
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Detailed explanation-1: -75 per cent of ANBC as computed in para 6 below or CEOBE whichever is higher. 18 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
Detailed explanation-2: -4. SFBs are allowed to lend to registered NBFC-MFIs and other MFIs which have a ‘gross loan portfolio’ (GLP) of up to ₹500 crore as on March 31 of the previous financial year, for the purpose of on-lending to priority sector.
Detailed explanation-3: -The correct answer is 18%. The priority sector lending is mainly intended to ensure the financial assistance to those sectors of the economy which has not received adequate support of financial institutions.
Detailed explanation-4: -Further, in order to ensure that the bank extends loans primarily to small borrowers, at least 50 per cent of its loan portfolio should constitute loans and advances of up to ₹25 lakh (US$34, 000). After the initial stabilisation period of five years, and after a review, RBI may relax the above exposure limits.