BANKING AFFAIRS

Detailed explanation-1: -ANBC is the net bank credit plus investments made by banks in non-SLR bonds held in the held-to-maturity category or credit equivalent amount of off-balance-sheet exposure, whichever is higher.

Detailed explanation-2: -Banks should also add these deposits to Net Bank Credit (NBC) for computation of Adjusted Net Bank Credit (ANBC). However, deposits with NABARD, SIDBI, MUDRA and NHB cannot be reckoned for sub-target achievement viz.

Detailed explanation-3: -6.1 For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] and computed as follows: Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42(2) of the RBI Act, 1934]

Detailed explanation-4: -Adjusted Net Bank Credit & Credit Equivalent to Off Balance Sheet Exposure || Banking Gyaan Kendra.

Detailed explanation-5: -An adjustment credit is a short-term loan extended by a Federal Reserve Bank to a smaller commercial bank when it needs to maintain its reserve requirements. Commercial banks secure adjustment credits with promissory notes when interest rates are high and the money supply is short.