Wednesday, 28 August 2019

Priority Sector Lending-3, Banking Fundamentals to Know for students.


Priority Sector Lending - 3          Banking Technology for Common Customer
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Educational Loan
All basis expenses like costs of books, tuition fees, lodging expenses, caution deposits and the like are covered under the educational loan that can be availed up to a maximum limit of Rs. 10 lakhs. Repayment period for loans up to Rs.7.50 lakh is 10 years and for loans above Rs.7.50 lakh up to 15 years.
1.    There is no limit for education loan for inland and abroad studies. However, for inland studies loans up to Rs.10 lakhs will be classified by the Bankers as a priority sector and above Rs. 10 lakhs it would be at a higher rate of interest.
2.    In respect of studies abroad, the loans up to Rs. 20 lakhs will be classified by the Bankers as priority sector and above Rs. 20 lakhs it would be at a higher rate of interest. The higher rate of interest concept varies from bank to bank.
3.    Education loans above Rs.7.5 lakhs will be provided only if tangible securities like a mortgage of property is provided.

Currently, loans to individuals for up to Rs 28 lakh in metropolitan centers and Rs 20 lakh in other centers can be classified under priority sector, provided that the cost of dwelling unit does not exceed Rs 35 lakh and Rs 25 lakh respectively.
Renewable Energy
https://pkrbur.com
REASONING
As per RBI’s notification, banks can now provide loans up to a limit of Rs 150 million to borrowers for solar, biomass, wind, and micro-hydel power generation, and also for renewable energy-based public utilities like street lighting systems and remote village electrification. For individual households, the loan limit has been set to Rs 1 million per borrower.
*For cultivating more than one crop in a year: The limit will be fixed based on the crops cultivated according to the cropping pattern for the first year with an additional 10% of the limit towards the cost escalationincrease in the scale of finance for every successive year.
*The Govt. doubled the pecuniary limit to Rs 20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.
*Sarfaesi Act.
The provisions of this Act are applicable only for 1.NPA loans with outstanding above Rs. 1.00 lac. 2.NPA loan accounts where the amount is less than 20% of the principal and interest are not eligible to be dealt with under this Act.
Conflict resolution is conceptualized as the methods and processes involved in facilitating the peaceful ending for conflict and retribution. Committed group members attempt to resolve group conflicts by actively communicating information about their conflicting motives or ideologies to the rest of the group (e.g., intentions; reasons for holding certain beliefs) and by engaging in collective negotiation. Dimensions of resolution typically parallel the dimensions of conflict in the way the conflict is processed. The term conflict resolution may also be used interchangeably with dispute resolution, where arbitration and litigation processes are critically involved. The concept of conflict resolution can be thought to encompass the use of nonviolent resistance measures by conflicted parties in an attempt to promote effective resolution.
  1. Which of the following categories under priority sector?
    A. Export Credit
    B. Agriculture
    C. Social Infrastructure
    D. Renewable Energy
    E. All of these
  2. Which of the following categories under priority sector?
    A. Micro, Small and Medium Enterprises
    B. Education
    C. Housing
    D. All of these
    E. None of these
  3. Bank loans up to a limit of ______ per borrower for building social infrastructure under priority sector.
    A. Rs. 1 crore
    B. Rs. 2 crore
    C. Rs. 3 crore
    D. Rs. 5 crore
    E. None of these
  4. Bank loans up to a limit of _____ to borrowers for purposes like solar based power generators under priority sector.
    A. Rs. 10 crore
    B. Rs. 18 crore
    C. Rs. 15 crore
    D. Rs. 20 crore
    E. None of these
  5. For individual households, the loan limit is for renewable energy under priority sector ______ per borrower.
    A. Rs. 5 lakh
    B. Rs. 10 lakh

    C. Rs. 15 lakh
    D. Rs. 20 lakh
    E. None of these
  6. Bank loans up to ____ per unit to Micro and Small Enterprises under priority sector.
    A. Rs. 1 crore
    B. Rs. 2 crore
    C. Rs. 3 crore
    D. Rs. 5 crore
    E. None of these
  7. Bank loans up to ____ per unit to Medium Enterprises under priority sector.
    A. Rs. 10 crore
    B. Rs. 18 crore
    C. Rs. 15 crore
    D. Rs. 20 crore
    E. None of these
  8. Loans to individuals for educational purposes including vocational courses up to _______ irrespective of the sanctioned amount is eligible for classification under priority sector.
    A. Rs. 5 lakh
    B. Rs. 10 lakh
    C. Rs. 15 lakh
    D. Rs. 20 lakh
    E. None of these
  9. Loans to individuals up to ______ in metropolitan centers (with the population of ten lakh and above) under priority sector.
    A. Rs. 25 lakh
    B. Rs. 18 lakh
    C. Rs. 15 lakh
    D. Rs. 28 lakh
    E. None of these
  10. Loans up to _______ in other centers for purchase/construction of a dwelling unit per family under priority sector.
    A. Rs. 20 lakh
    B. Rs. 18 lakh
    C. Rs. 15 lakh
    D. Rs. 28 lakh
    E. None of these
11. Kisan Cards are issued for_______________
a.short term only
b.for term loans only
c.for both the short term and term loan
d.for meeting domestic expenses only

12. Under farm mechanisation scheme, loan is given for________________
i.              providing irrigation facilities
ii.             cultivation expenses
iii.           purchase of farm equipments
iv.            for digging wells
13. Advances to weaker sections "interalia" include _________________

i.Individual women beneficiaries up to Rs 2 lakh per borrower

ii.Distressed persons other than farmers, with loan amount not exceeding Rs 2 lakh per borrower to prepay their debt to non-institutional lenders

iii.Overdrafts up to Rs 5000 under PradhanMantri Jan DhanYojana accounts

iv.Artisans, village and cottage industries where individual credit limits do not exceed Rs 2 lakh
14. The scheduled commercial banks are expected to enlarge credit to the priority sector and ensure that priority sector advances constitute _______________ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

i.eighteen percent
ii.forty percent
iii.twelve percent
iv.twenty five percent
15. Educational loans should include only loans and advances granted to individuals for educational purposes up to Rs ________ for studies in India, to be classified as a priority sector.

i.seven and a half lakh ii .ten lakh        iii.fifteen lakh            iv.twenty lakh
16. Housing Loans granted to individuals up to Rs __________ for construction of house (excluding loans granted by banks to their employees) at non-urban centers are treated as priority sector advances.

i.five lakhs
ii.ten lakhs
iii.twenty lakhs
iv.fifteen lakhs
17. Under MSME, loans in the manufacturing sector for micro-enterprises do not exceed Rs ________ lakh
a.50
b.30
c.25
d.20
18. Under MSME, loans in the service sector for micro-enterprises do not exceed Rs ________ lakh
i.5
ii.15
iii.10
iv.20
19. Under Renewable Energy, for the individual household, the loan limit will be Rs ________lakh per borrower.
i.20
ii.10
iii.15
iv.5
20. No loan related and adhoc service charges/inspection charges should be levied on priority, sector loans up to Rs 25000/-

True                                                     False
21. Who issues priority sector lending guidelines in India?
A.    Basel Committee on Banking Supervision (BCBS)
B.    Reserve Bank of India (RBI)
C.    Bank of International Settlement (BIS)
D.    Department of Financial Services
22. Priority Sector Lending guidelines are not applicable to which out of the following type of banks?
A.    Small Finance Banks
B.    Foreign banks
C.    Scheduled Commercial Banks
D.    None of these
23. Which among the following sectors does not fall under Priority Sector as Priority Sector Lending guidelines in India?
A.    Automobile
B.    Agriculture
C.    Housing
D.    Education
24.Up to what amount of Education Loan is eligible to be classified as Priority Sector?
A.    Rs 5 lakh
B.    Rs 7.5 lakh
C.    Rs 10 lakh (for education in India)
D.    Rs 20 lakh (for education I Aboard)
25. What is the total priority sector target for Domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) as a percentage of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher?
A.    25%
B.    30%
C.    35%
D.    40%


 Bold options are the correct answer.

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