Consider the following statements regarding Priority sector lending in India 1 Bank a...........

Economic Affairs Types of Banks and Banking

Consider the following statements regarding Priority sector lending in India:

1. Bank advances to microfinance institutions (MFIs) for lending to individuals, members of self-help groups and joint liability groups will qualify as PSL

2. All housing loans are regarded as PSL lending

Which of the above statements are correct?

1 only

2 only

Both 1 & 2

Neither of above

छोटे Courses बड़े Results

Master Types of Banks and Banking

Prepare through Micro-courses

Try Now

Explanation:

2nd statement is incorrect.
All type of housing loans are not part of priority sector, there is a certain limit.
Loans to individuals up to 28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to 20 lakh in other centres for purchase/construction of a dwelling unit per family, are eligible to be considered as priority sector provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed 35 lakh and 25 lakh, respectively. Housing loans to banks’ own employees are not eligible for classification under priority sector.