Banking Awareness Quiz for Bank Exams 2021- 2nd May

Q1. Who issues priority sector lending guidelines in India?
(a) Bank of International Settlement
(b) Department of Financial Services
(c) Basel Committee on Banking Supervision
(d) Reserve Bank of India
(e) None of these

Q2. The Priority Sector Lending Certificates (PSLCs) can be traded using the RBI’s………..
(a) CBS
(b) RTGS
(c) e-Kuber platform
(d) NEFT
(e) None of these

Q3. How many types of PSLCs can be issued by the Banks?
(a) Four
(b) Five
(c) Seven
(d) Six
(e) Two

Q4. The price of PSLCs will be determined on the basis of………
(a) Performance
(b) Demand and Supply
(c) Repo Rate
(d) Bank Rate
(e) None of these

Q5. Bank loans up to ………. to Micro and Small Enterprises are eligible for classification under priority sector.
(a) Rs 25 crore
(b) Rs 15 crore
(c) Rs 5 crore
(d) Rs 12 crore
(e) Rs 20 crore

Q6. Which of the following is not the sub-category under Agriculture in Priority Sector Lending?
(a) Farm credit
(b) Storehouse Infrastructure
(c) Ancillary activities
(d) Agriculture infrastructure
(e) None of these

Q7. Bank loans up to ………. to Medium Enterprises are eligible for classification under priority sector.
(a) Rs 30 crore
(b) Rs 20 crore
(c) Rs 25 crore
(d) Rs 10 crore
(e) Rs 15 crore

Q8. Which among the following sectors does not fall under Priority Sector as Priority Sector Lending guidelines in India?
(a) Housing
(b) Automobile
(c) Agriculture
(d) Education
(e) None of these

Q9. What is the loan limit for education for studies in India under priority sector?
(a) Rs 25 lakh
(b) Rs 20 lakh
(c) Rs 10 lakh
(d) Rs 30 lakh
(e) Rs 15 lakh

Q10. For individual households, the loan limit is for renewable energy under priority sector……..per borrower.
(a) Rs. 10 lakh
(b) Rs. 15 lakh
(c) Rs. 20 lakh
(d) Rs. 8 lakh
(e) Rs. 12 lakh

Practice More Questions of Banking Awareness for Competitive Exams:

Solutions

S1. Ans.(d)
Sol. The Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks on Priority Sector Lending.

S2. Ans.(c)
Sol. RBI launched a platform to enable trading in the priority sector lending certificates (PSLC) through its Core Banking Solution (CBS) portal (e-Kuber).

S3. Ans.(a)
Sol. Banks can issue four types of PSLCs including three subsector PSLCs- agriculture, small and marginal farmers, micro enterprises and one PSLC for general.

S4. Ans.(b)
Sol. The price of PSLCs will be determined on the basis of demand and supply that will be reflected in the auction under the RBI’s e-Kuber trading platform.

S5. Ans.(c)
Sol. Bank loans are up to ₹ 5 crore per unit to Micro and Small Enterprises.

S6. Ans.(b)
Sol. The activities covered under Agriculture are classified under three sub-categories viz. Farm credit, Agriculture infrastructure and Ancillary activities.

S7. Ans.(d)
Sol. Bank loans up to ₹ 10 crore to Medium Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006 are eligible for classification under priority sector.

S8. Ans.(b)
Sol. Priority Sector includes Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy and Others.

S9. Ans.(c)
Sol. Loans to individuals for educational purposes for studies in India including vocational courses upto ₹ 10 lakh irrespective of the sanctioned amount are eligible for classification under priority sector.

S10. Ans.(a)
Sol. For individual households, the loan limit is ₹ 10 lakh per borrower.