Priority Sector Lending in India – Download the free E-Book

Priority Sector Lending is a very important topic when it comes to Banking and Government Exams. Very often questions are asked in various Banking Exams and Government Exams such as SBI PO and Clerk, IBPS PO and IBPS Clerk, RBI Grade B and Assistant, SSC CGL, UPSC, NIACL AO, IBPS SO SEBI, ESIC SSO, NABARD, IBPS RRB, UPSC and in IBPS PO interview as well. So,here we provide you all the crucial information about the Priority Sector Lending in India, who regulates and implements the Priority Sector Lending targets and much more.

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Priority Sector Lending in India

Priority sectors are those sectors of the economy that would not get timely and requisite attention in the absence of special dispensation to them. The Central Government and the Reserve Bank of India give due importance when it comes to providing credit/loans to these sectors to alleviate these sectors. RBI sets certain targets of credit that should be provided to these vulnerable sectors by the banks and other financial Institutions which otherwise may not be attractive to the banks from the point of view of vulnerability.

Here are few Sample Questions:

Q1. What is the limit of Bank loans to Micro and Small Enterprises to be eligible for classification under priority sector?
A) Rs 5 crore
B) Rs 10 crore
C) Rs 15 crore
D) Rs 20 crore

Solution:  A

Q2. What is the loan limit for education under priority sector?
A) Rs 5 lakh
B) Rs 10 lakh
C) Rs 15 lakh
D) Rs 20 lakh

Solution: B

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