1. RBI has advised the banks to raise the shares of priority sector lending to 40 % of the aggregate bank advances.2. Out of this 40 %, 18 % is for agricultural sector (no targets for foreign banks), 10 % is for weaker sections (no targets for foreign banks), and 1 % of previous year?s total advances are given under DRI (Differential Rate of Interest Scheme) (no targets for foreign banks).3. Above mentioned limit is for domestic commercial banks. For foreign banks, 32 % of ANBC (Adjusted Net Bank Credit) is for priority sector advances.4. Export credit is not a part of priority sector for domestic commercial banks. However foreign banks are given target of 12 % of ANBC.5. Description of Micro, Small and Medium Sectors:Investment in plant and machinery Investment in Equipment Type of Enterprise (Manufacturing Sector) – (Services Sector)Up to 25 lacs – up to 10 lacs Tiny25 lacs to 5 crore – 10 lacs to 2 crore Small5 crore to 10 crore – 2 crore to 5 crore Medium6. Micro credit includes provision of very small amounts up to Rs 50,000 per borrower.7. The government has decided that the farmers should receive short term credit at 7 % with an upper limit of 3 lakh on the principal amount. On this amount, the government provides interest subvention of 2 % p.a. to the banks.8. This 2 % subvention will be available to banks on condition that they make short term credit available at the ground level with ROI of 7 % p.a.
Welcome! Log into your account
Recover your password
A password will be e-mailed to you.
Principles and Legal Banking Videos
PPB Module D 4th Class | PPB Module D Class 50 | Principles and Practices of Banking
LRAB Class - 1 Daily Free Live Classes | Legal and Regulatory Aspects of Banking
Non Performing assets | PPB Module B Class 35 | Principles and Practices of Banking
Memory Recalled Questions | PPB Module B Class 26 | JAIIB Live Class
Negotiable Instruments | PPB Module B Class 21 | JAIIB - Bank Promotion Class