Question
Download Solution PDFWhich of the following deposits are not considered under Priority Sector Lending (PSL) when forwarded by banks?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Deposits from Non-Banking Financial Companies (NBFCs).
In News
- RBI clarified that loans forwarded by banks using deposits from NBFCs do not qualify under PSL norms.
Key Points
- NBFC deposits do not contribute to Priority Sector Lending (PSL).
- PSL focuses on credit access for agriculture, MSMEs, and housing.
- Banks must comply with RBI’s PSL norms to ensure financial inclusion.
- NBFCs act as intermediaries and are not direct PSL lenders.
Additional Information
- PSL Targets
- Banks must allocate 40% of Adjusted Net Bank Credit (ANBC) to PSL.
- Includes categories like MSMEs, education, renewable energy.
- Cooperative banks and RRBs follow similar PSL guidelines.
Last updated on Jul 14, 2025
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