BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

PSLCs are tradable certificates issued against priority sector loans of banks. What does meaning of “Cs” in PSLCs?

A	Cess
B	Cities
C	Census
D	Certificates

Explanation:

Detailed explanation-1: -What are Priority Sector Lending Certificates (PSLCs)? 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.

Detailed explanation-2: -Priority Sector Lending Certificates (PSLCs)

Detailed explanation-3: -Priority Sector Lending Certificates is a tool for promoting comparative advantages among banks while they meet their priority sector lending obligations in India.

Detailed explanation-4: -There are four types of PSLCs: Agriculture, Small/Marginal Farmers, Micro Enterprises and General-that is, other than loans to agriculture and micro enterprises. A bank having shortfall in achievement of any sub-target will have to buy the specific PSLC to achieve the target.

Detailed explanation-5: -Clarification: There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises.

There is 1 question to complete.