BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Non priority sector
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priority sector
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commercial sector
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Agriculture sector
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Detailed explanation-1: -The correct answer is Agriculture. The priority sector lending by commercial banks in India is to agriculture, small-scale industries, and the weaker sector of the population. Targeted financing for the areas in an economy that are lagging behind the normal pace of development is called priority sector lending.
Detailed explanation-2: -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: -Priority sector lending includes only those sectors as part of the priority sector, that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises.
Detailed explanation-4: -PSL targets for UCB: Targets for priority sector lending by Primary (Urban) Co-operative Banks (UCBs) Micro Enterprises – 7.5 per cent of ANBC. Advances to Weaker Sections-12 per cent of ANBC.