UPSC Civil Services Model Paper 3

● In terms of Reserve Bank of India (RBI) guidelines on Priority Sector Lending (PSL) a target of 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE) , whichever is higher, as of preceding March 31st, has been mandated for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 branches and above . Hence, Statement 1 is correct.
● Within this, sub-targets of 18% of ANBC or OBE whichever is higher, as of preceding March 31st is for Agriculture and 10% ANBC or OBE whichever is higher, as of preceding March 31st is for weaker sections which include, among others, persons from SCs/ STs. RBI prescribes PSL targets bank-wise and not state-wise.
● RRBs and SFBs are required to meet a target of 75 per cent towards PSL .