Bank Loans for Educational and Health Facilities

Questions and Answers

What is the maximum loan limit for building health care facilities under 'Ayushman Bharat' for a borrower in Tier II to Tier VI centres?

₹30 crore

₹10 crore (correct)

₹5 crore

₹1 crore

Which of the following activities is NOT eligible for priority sector classification?

Loans for non-viable SHG activities (correct)

Agriculture-related investments

Loans for solar power generators

Construction of household toilets

What is the loan limit per borrower for individual households seeking funds for renewable energy purposes?

₹5 lakh

₹20 lakh

₹30 lakh

₹10 lakh (correct)

For which of the following borrower categories does the ₹2 lakh loan limit NOT apply?

Agricultural activities Signup and view all the answers

What loans are specified for distressed persons other than distressed farmers?

Loans not exceeding ₹1 lakh Signup and view all the answers

Which of the following is the loan limit for micro-hydel plants under priority sector lending?

₹30 crore Signup and view all the answers

Which financial institutions are NOT applicable to the loan limits specified for UCBs?

Regional Rural Banks (RRBs) Signup and view all the answers

What type of loans provided by banks to SHG/JLG members for social needs do NOT exceed ₹2 lakh?

Construction loans Signup and view all the answers

Which activity is NOT part of the permissible actions under the food processing sector?

Plant tissue culture Signup and view all the answers

What type of loans are provided for the establishment of Agri-business centres?

Bank loans Signup and view all the answers

Which of the following is an example of ancillary activities in agriculture?

Establishment of Custom Service Units Signup and view all the answers

Which process is NOT considered a primary or minimal processing technique for fruits and vegetables?

Deep freezing Signup and view all the answers

What type of facilities are required for the production and distribution of bio-fuels?

Oil extraction and processing units Signup and view all the answers

What is a permissible activity related to the management of produce?

Field heat removal Signup and view all the answers

Which of the following loans is specified to be sanctioned by banks for MFIs?

Loans for on-lending to agriculture sector Signup and view all the answers

What technological technique is NOT mentioned for storage in the food processing sector?

Hydro-cooling systems Signup and view all the answers

What will UCBs be required to contribute to against their priority sector lending shortfall?

Rural Infrastructure Development Fund Signup and view all the answers

How is the overall shortfall or excess in priority sector lending calculated at the end of the year?

Using a simple average of all quarters Signup and view all the answers

What happens in the case of mis-classifications reported by the Reserve Bank?

They are adjusted from the achievement of that year. Signup and view all the answers

What is the maximum service charge that can be levied on priority sector loans up to ₹25,000?

No service charges Signup and view all the answers

By whom will the interest rates on contributions to RIDF or any other funds be fixed?

Reserve Bank of India Signup and view all the answers

What does the receipt, sanction/rejection/disbursement register maintain?

The loan processing timeline and respective reasons Signup and view all the answers

What will non-achievement of priority sector targets influence?

Regulatory clearances and approvals Signup and view all the answers

What defines the period during which the monitoring of shortfall or excess lending occurs?

Quarterly Signup and view all the answers

What is required for investments by banks in securitisation notes to be classified under priority sector categories?

The underlying assets must have been classified as priority sector advances before securitisation. Signup and view all the answers

What is the all-inclusive interest cap charged to borrowers by the originating entity for securitisation notes?

MCLR + 10% or EBLR + 14% Signup and view all the answers

Which of the following types of loans is excluded from priority sector classification when linked to securitisation notes?

Loans against gold jewellery Signup and view all the answers

For the transfer of assets through direct assignment to qualify for priority sector classification, what must the assets be?

Classified as priority sector advances before purchase. Signup and view all the answers

Which document outlines the guidelines for investments in securitisation notes?

Master Directions DOR.STR.REC.53/21.04.177/2021-22 Signup and view all the answers

Which entities are explicitly not applicably classified under the securitisation notes regulations?

Regional Rural Banks and Urban Cooperative Banks Signup and view all the answers

What distinguishes the interest rate cap for investments in securitisation notes originated by MFIs?

MFIs have separate margin and interest rate caps. Signup and view all the answers

What are the guidelines for the transfer of loan exposures issued by the Reserve Bank of India focused on?

Eligible classifications for priority sector advances. Signup and view all the answers

What type of food products include Instant Mixes and Ready to Eat (RTE) products?

Processed food products Signup and view all the answers

Which product type refers specifically to enhanced health benefits?

Functional foods Signup and view all the answers

What is a common method for increasing the shelf life of food products?

Adding preservatives Signup and view all the answers

Which product is NOT considered a plantation crop?

Rice Signup and view all the answers

What type of packaging material is commonly used for food safety and durability?

Tetra packs Signup and view all the answers

Which type of product does Spirulina belong to?

Algal product Signup and view all the answers

In the financial year calculation, shortfall or excess refers to the difference between which two amounts?

Total targets and actual disbursements Signup and view all the answers

What does PSL stand for in the context of financial sector targets?

Priority Sector Lending Signup and view all the answers

Which of the following does NOT fall under the category of fortified foods?

Whole grain bread Signup and view all the answers

What is considered a target for banks under revised PSL guidelines?

Financing agricultural projects Signup and view all the answers

Study Notes

Loans up to ₹5 crore per borrower for establishing schools, drinking water, and sanitation facilities.
Loans capped at ₹10 crore per borrower for constructing health care facilities, especially under 'Ayushman Bharat', in Tier II to VI centers.
Urban Cooperative Banks (UCBs) apply these limits only in centers with populations under one lakh.

Financing for Microfinance Institutions (MFIs)

Loans to MFIs for on-lending to individuals and SHG/JLG members for water and sanitation projects are permitted under specific criteria.
Exceptions exist for Regional Rural Banks (RRBs), UCBs, and Small Finance Banks (SFBs).

Renewable Energy Financing

Loans up to ₹30 crore for renewable energy projects, including solar, wind, and biomass initiatives.
For individual households, the loan ceiling is set at ₹10 lakh.

Guidelines for Additional Loan Categories

Loans to individuals and SHG/JLG members must meet the conditions outlined in the Microfinance Loans Directive.
A loan limit of ₹2 lakh for SHG/JLGs for non-agricultural or non-MSME activities like social needs or toilet construction.
Loans for distressed individuals (not farmers indebted to non-institutional lenders) capped at ₹1 lakh for debt repayment.

Investments and Securitisation

Bank investments in securitisation notes targeting priority sector loans are eligible for classification under respective categories, provided they meet RBI guidelines.
All-inclusive interest charged to borrowers should not exceed the lending bank's MCLR + 10% or EBLR + 14%.

Transfer of Assets Provisions

Direct assignment or outright purchase of asset pools by banks for priority sector loans is valid if the loans meet prior classification and RBI guidelines.
Similar interest rate caps apply to these transactions as mentioned for securitisation.

Rural Infrastructure and Targets

UCBs (excluding those following all-inclusive guidelines) are required to contribute to the Rural Infrastructure Development Fund (RIDF) if they fall short of priority sector lending targets.
Quarterly shortfalls or excess lending are calculated separately, influencing overall annual assessments.

Common Guidelines for Priority Sector Loans

Banks must adhere to prescribed interest rates and avoid additional service charges on loans below ₹25,000.
A formal register must be maintained to document the receipt, sanction, rejection, and disbursement of loans.

Permissible Activities in Food Processing Sector

Activities include cleaning, packing, cold storage, minimal processing, packaging production, and the creation of organic products.
Emphasis on enhancing shelf-life and producing food-grade packaging materials.

Priority Sector Achievement Calculation

Annual assessments of shortfall or excess in priority sector lending are computed quarterly, considering adjustments for credit to identified districts.
Illustrations demonstrate the method of tracking shortfalls across different quarters.

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Description

This quiz explores the regulations and limits on bank loans designated for setting up educational institutions, drinking water and sanitation facilities, and health care developments under the Ayushman Bharat scheme. Test your knowledge on the financial support available for these critical infrastructure projects.