RBI has recently decided to do away with the per borrower loan limits to Micro/Small and Medium Enterprises (Services) for classification under PSL. PSL stands for

BANKING GENERAL KNOWLEDGE

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

A	Private Sector Lending
B	Priority Sector Lending
C	Priority Service Lending
D	Priority Securities Lending

Explanation:

Detailed explanation-1: -All loans to units in the KVI sector will be eligible for classification under the sub-target of 7.5 percent prescribed for Micro Enterprises under priority sector. Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt.

Detailed explanation-2: -It means those sectors which the Government of India and Reserve Bank of India consider as important for the development of the basic needs of the country and are to be given priority over other sectors. The banks are mandated to encourage the growth of such sectors with adequate and timely credit.

Detailed explanation-3: -(ii) Loans up to Rs 50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that are engaged in agriculture and allied services. (iii) Loans for Food and Agro-processing up to an aggregate sanctioned limit of Rs 100 crore per borrower from the banking system..

There is 1 question to complete.