Podcast
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?
What is the maximum loan limit for building health care facilities under 'Ayushman Bharat' for a borrower in Tier II to Tier VI centres?
Which of the following activities is NOT eligible for priority sector classification?
Which of the following activities is NOT eligible for priority sector classification?
What is the loan limit per borrower for individual households seeking funds for renewable energy purposes?
What is the loan limit per borrower for individual households seeking funds for renewable energy purposes?
For which of the following borrower categories does the ₹2 lakh loan limit NOT apply?
For which of the following borrower categories does the ₹2 lakh loan limit NOT apply?
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What loans are specified for distressed persons other than distressed farmers?
What loans are specified for distressed persons other than distressed farmers?
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Which of the following is the loan limit for micro-hydel plants under priority sector lending?
Which of the following is the loan limit for micro-hydel plants under priority sector lending?
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Which financial institutions are NOT applicable to the loan limits specified for UCBs?
Which financial institutions are NOT applicable to the loan limits specified for UCBs?
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What type of loans provided by banks to SHG/JLG members for social needs do NOT exceed ₹2 lakh?
What type of loans provided by banks to SHG/JLG members for social needs do NOT exceed ₹2 lakh?
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Which activity is NOT part of the permissible actions under the food processing sector?
Which activity is NOT part of the permissible actions under the food processing sector?
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What type of loans are provided for the establishment of Agri-business centres?
What type of loans are provided for the establishment of Agri-business centres?
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Which of the following is an example of ancillary activities in agriculture?
Which of the following is an example of ancillary activities in agriculture?
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Which process is NOT considered a primary or minimal processing technique for fruits and vegetables?
Which process is NOT considered a primary or minimal processing technique for fruits and vegetables?
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What type of facilities are required for the production and distribution of bio-fuels?
What type of facilities are required for the production and distribution of bio-fuels?
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What is a permissible activity related to the management of produce?
What is a permissible activity related to the management of produce?
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Which of the following loans is specified to be sanctioned by banks for MFIs?
Which of the following loans is specified to be sanctioned by banks for MFIs?
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What technological technique is NOT mentioned for storage in the food processing sector?
What technological technique is NOT mentioned for storage in the food processing sector?
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What will UCBs be required to contribute to against their priority sector lending shortfall?
What will UCBs be required to contribute to against their priority sector lending shortfall?
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How is the overall shortfall or excess in priority sector lending calculated at the end of the year?
How is the overall shortfall or excess in priority sector lending calculated at the end of the year?
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What happens in the case of mis-classifications reported by the Reserve Bank?
What happens in the case of mis-classifications reported by the Reserve Bank?
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What is the maximum service charge that can be levied on priority sector loans up to ₹25,000?
What is the maximum service charge that can be levied on priority sector loans up to ₹25,000?
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By whom will the interest rates on contributions to RIDF or any other funds be fixed?
By whom will the interest rates on contributions to RIDF or any other funds be fixed?
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What does the receipt, sanction/rejection/disbursement register maintain?
What does the receipt, sanction/rejection/disbursement register maintain?
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What will non-achievement of priority sector targets influence?
What will non-achievement of priority sector targets influence?
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What defines the period during which the monitoring of shortfall or excess lending occurs?
What defines the period during which the monitoring of shortfall or excess lending occurs?
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What is required for investments by banks in securitisation notes to be classified under priority sector categories?
What is required for investments by banks in securitisation notes to be classified under priority sector categories?
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What is the all-inclusive interest cap charged to borrowers by the originating entity for securitisation notes?
What is the all-inclusive interest cap charged to borrowers by the originating entity for securitisation notes?
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Which of the following types of loans is excluded from priority sector classification when linked to securitisation notes?
Which of the following types of loans is excluded from priority sector classification when linked to securitisation notes?
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For the transfer of assets through direct assignment to qualify for priority sector classification, what must the assets be?
For the transfer of assets through direct assignment to qualify for priority sector classification, what must the assets be?
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Which document outlines the guidelines for investments in securitisation notes?
Which document outlines the guidelines for investments in securitisation notes?
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Which entities are explicitly not applicably classified under the securitisation notes regulations?
Which entities are explicitly not applicably classified under the securitisation notes regulations?
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What distinguishes the interest rate cap for investments in securitisation notes originated by MFIs?
What distinguishes the interest rate cap for investments in securitisation notes originated by MFIs?
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What are the guidelines for the transfer of loan exposures issued by the Reserve Bank of India focused on?
What are the guidelines for the transfer of loan exposures issued by the Reserve Bank of India focused on?
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What type of food products include Instant Mixes and Ready to Eat (RTE) products?
What type of food products include Instant Mixes and Ready to Eat (RTE) products?
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Which product type refers specifically to enhanced health benefits?
Which product type refers specifically to enhanced health benefits?
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What is a common method for increasing the shelf life of food products?
What is a common method for increasing the shelf life of food products?
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Which product is NOT considered a plantation crop?
Which product is NOT considered a plantation crop?
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What type of packaging material is commonly used for food safety and durability?
What type of packaging material is commonly used for food safety and durability?
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Which type of product does Spirulina belong to?
Which type of product does Spirulina belong to?
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In the financial year calculation, shortfall or excess refers to the difference between which two amounts?
In the financial year calculation, shortfall or excess refers to the difference between which two amounts?
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What does PSL stand for in the context of financial sector targets?
What does PSL stand for in the context of financial sector targets?
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Which of the following does NOT fall under the category of fortified foods?
Which of the following does NOT fall under the category of fortified foods?
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What is considered a target for banks under revised PSL guidelines?
What is considered a target for banks under revised PSL guidelines?
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Study Notes
Bank Loans for Social and Health Initiatives
- 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.
