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Banking Sample Paper SBI Clerk Grade (Main) Sample Test Paper-5

  • question_answer
    What is the term for backs' lending to farmers for agriculture, micro and small enterprises, and other weaker sections wherein banks are required to lend up to 40 percent of the loans?               

    A)  Para Banking

    B)  Sub Prime Lending      

    C)  Retail lending

    D)  Non-Priority Sector Lending

    E)  Priority Sector Lending

    Correct Answer: E

    Solution :

     Under the Priority Sector Lending, banks have to spend up to 40 percent of their loans on priority sectors (agriculture, micro and small enterprises, education, housing, export credit and others). Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. The rate of in- tourist on various priority sector loans are as per MBFs directives Issued from time to time, which Is linked to Base Rate of banks at present.


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