A foreign bank having 30 branches has failed to achieve its Priority Sector Lending target What act...........

Economic and Social Issues Monetary and Fiscal Policy

A foreign bank having 30 branches has failed to achieve its Priority Sector Lending target. What action would follow in this regard?

The amount that is lagging in the target goes to the RIDF (Rural Infrastructure Development Fund)

The amount that is lagging in the target goes to SEDF (Small Enterprises Development Fund)

The banking license of the foreign bank would stand cancelled with immediate effect

The double of the amount that is lagging will be required to be met next year under Priority Sector Lending in addition to normal target

None of the options given above

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Explanation:

Rural Infrastructure Development Fund (RIDF) was instituted in NABARD with an announcement in the Union Budget 1995-96 with the sole objective of giving low cost fund support to State Govts. andState Owned Corporations for quick completion of ongoing projects relating to medium and minor irrigation, soil conservation, watershed management and other forms of rural infrastructure.