In India, what percentage is set as the Priority Sector Lending (PSL) goal for Small Finance Banks (SFBs)?
General Knowledge
Indian Economy
Difficulty: Medium
Choose an option
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A50%
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B60%
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C65%
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D75%
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E80%
Answer
Correct Answer: 75%
Explanation
### Concept & Fact Check
This question assesses knowledge of Priority Sector Lending (PSL) guidelines formulated by the RBI, specifically the differentiated targets for specialized banking entities.
### Step-by-Step Solution
* **Given:** Identify the PSL target percentage for Small Finance Banks (SFBs).
* **Fact Check:** According to RBI regulations, Small Finance Banks are designed to further financial inclusion. To align with this core mandate, they are required to extend 75% of their Adjusted Net Bank Credit (ANBC) to sectors classified as priority sectors (like agriculture, MSMEs, etc.).
* **Conclusion:** The PSL mandate for SFBs is 75%.
### Exam Strategy & Shortcut
Remember that specialized inclusive entities like Small Finance Banks (SFBs) and Regional Rural Banks (RRBs) have a much higher PSL target (75%) compared to the standard commercial bank target (40%).
### Common Pitfall
Confusing the target for Small Finance Banks (75%) with the standard target for domestic scheduled commercial banks, which is set significantly lower at 40%.
### Final Answer
Therefore, the correct answer is **75%**.