RULAR BANKING MODULE C QUIZ 1

PSL directs a prescribed share of bank lending towards sectors that may otherwise receive inadequate institutional credit, supporting inclusion and balanced economic development.

The standard agriculture sub-target for domestic commercial banks is 18%. Separate sub-targets apply to small and marginal farmers and micro enterprises, subject to current RBI directions.

RBI PSL targets are generally calculated against ANBC or the credit equivalent of off-balance-sheet exposure, whichever is higher, as specified in the applicable directions.

Eligible loans for specified social infrastructure, such as schools, health facilities, sanitation and drinking water, can qualify under RBI‘s conditions.

Poverty assessment informs targeting, resource allocation and evaluation. Measures should reflect the chosen methodology and the dimensions of deprivation being assessed.

PMAY-G aims to support eligible rural households in constructing pucca houses with basic amenities, according to scheme eligibility and implementation guidelines.

Financial education improves knowledge, skills and behaviour so consumers can assess products, understand risks and make informed financial decisions.

Relief depends on the nature of calamity, official assessment and current RBI/state instructions. Measures may include restructuring or other relief, not automatic universal waiver.

Scheme conditions differ; correct checking prevents ineligible sanction, incorrect subsidy claims and repayment or compliance issues.

The prescribed denominator is a regulatory measure, not simply a snapshot of gross loans or deposits; the exact calculation follows RBI directions.

Scheme amounts and operational details can be revised. Banks should use the current official guidelines rather than rely on outdated figures.

Banks should address the underlying account issue, communicate the required steps and follow official reprocessing and grievance procedures while protecting identity and payment integrity.

Borrower-wise assessment helps apply the appropriate permitted relief, based on the actual impact and relevant official instructions.

Sub-targets focus credit toward specified sectors and groups, so banks cannot rely solely on other eligible categories to meet the overall PSL target.

File-level checks and system controls help ensure that reported exposures meet category conditions and that misclassification is corrected promptly.

Regulatory directions specify when requirements take effect and may include transition provisions; banks should apply them accordingly.

Outputs are immediate deliverables; outcomes are the changes experienced by beneficiaries. Both are useful but measure different things.

Inclusion is meaningful when services are usable, affordable and appropriate to household needs, not merely when an account is opened.

Education support schemes have defined eligibility and process requirements. Current official guidelines should be checked before a benefit is promised or claimed.

Financial capability means applying knowledge and skills to real decisions, including comparing costs, budgeting and protecting credentials.