Banking Awareness Question Bank

Priority Sector
1. What is the maximum loan amount under Agriculture infrastructure project for inclusion
under Priority Sector? (Ans. ₹100 crore per borrower from the banking system)
2. Loan to small farmer for purchase of agricultural land is classified under which category
of Priority Sector Lending? (Ans. Agriculture Farm Credit)
3. Food Credit is classified under which sector as per RBI Classification? (Ans. Priority
Sector
4. What is the target for Banks to achieve finance to Micro Enterprises? (Ans. 7.5% of
ANBC or CBOE whichever is higher)
5. As per Priority Sector Lending guidelines, for purpose of computation of achievement of
target under SF and MF sub segments under agriculture sector, Loans to FPOs/FPC of
individual Small and Marginal farmers directly engaged in Agriculture and Allied
Activities where the land-holding share of SMFs is not less than _______per cent will be
eligible for classification as loans to SFMF (Ans. 75%)
6. What is the maximum loan amount against pledge of Warehouse receipt to be included
under Priority Sector lending and under which sub-sector it will be classified? (Ans.
Rs/75.00 Lakhs)
7. . What are the agriculture ancillary activities as per Priority Sector Lending norms? (Ans.
Loans up to ₹5 crore to co-operative societies of farmers, Loans up to ₹50 crore to Start-
ups, that are engaged in agriculture and allied services, Loans for Food and Agro-
processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the
banking system and Outstanding deposits under RIDF and other eligible funds with
NABARD on account of priority sector shortfall.)
8. Loans up to what amount to co-operative societies of farmers for purchase of the
produce of members can be classified as Agriculture-Ancillary activities under Priority
Sector? (Ans. ₹5 crore)
9. . Loans for agriculture infrastructure such as Loans for construction of storage facilities
(warehouse, market yards, godowns and silos) including cold storage units, will be
classified under Priority Sector, subject to an aggregate sanctioned limit of
____________ (Ans.₹100 crore per borrower from the banking system )
10.. As per revised Priority Sector norms, what is the target in percentage of ANBC for
Weaker Section to be achieved by FY 2023-24 and for the FY 2021-22? (Ans. 12% and
11% respectively)
11.What is the total Priority Sector lending target for foreign Banks as percentage to ANBC?
(Ans. 40%)
12.Credit facilities to Agro/Food processing units up to what amount can be classified
under Priority Sector lending? (Ans. Rs.100.00 crores)
13.As per RBI guidelines, how many types of Priority Sector Lending Certificates (PSLCs) are
there? (Ans. Four)
14.For the purpose of computation of achievement of the sub-target under Priority Sector
Lending to SF/MF, Small and Marginal Farmers will include loans up to _________to
individuals solely engaged in Allied activities without any accompanying land holding
criteria. (Ans. ₹2 lakh)
15.Loans to farmers' producer companies of individual farmers, and co-operatives of
farmers directly engaged in Agriculture and Allied Activities, where the membership of
Small and Marginal Farmers is not less than________% can be classified as Agriculture
under Priority Sector. (Ans. 75% by number and whose landholding share is also not less
than 75% of the total land-holding
16.What is the maximum amount of loan to Start-ups can be classified under Priority
Sector? (Ans. Rs.50.00 crs)
17.Loans not exceeding ₹1.00 lakh per borrower provided directly by banks to individuals
and individual members of SHG/JLG, provided the individual borrower’s household
annual income in rural areas does not exceed ₹……… and for non-rural areas it does not
exceed ₹………., and loans not exceeding ₹……….. provided directly by banks to SHG/JLG
for activities other than agriculture or MSME, viz., loans for meeting social needs,
construction or repair of house, construction of toilets or any viable common activity
started by the SHGs can be classified under Priority Sector lending. (Ans. ₹1.00 lakh,
₹1.60 lakh and ₹2.00 lakh)
 Agriculture
1. Rearing/Farming of Fresh Water Fishes is called: (Ans. Aquaculture)
2. No margin to be stipulated for Bank loans under agriculture up to what amount? (Ans.
1.60 Lacs
3. An overdue crop loan account becomes NPA when the overdue continues for; (Ans. 2
crop seasons for short duration crop and one crop season for long duration crop.)
4. 'Per Drop More Crop' component of Pradhan Mantri Krishi Sinchayee Yojana focuses on;
(Ans. Enhancing water use efficiency at farm level through Micro Irrigation technologies
viz. Drip and Sprinkler irrigation)
5. PM Modi has launched the ‘Kisan Suryoday Yojana’ in which State with the aim of
providing 16 hours of power supply to farmers in the state every day? (Ans. Gujurat)
6. What is the additional interest subvention facility available for prompt repayment of
Short-Term Crop Loans up to a prescribed limit? (Ans. 3.00%)
7. Interest subvention for short term production credit under Kissan Credit Card scheme is
available up to a limit of ___________(Rs.3.00 Lakhs for Crop loan and Rs.2.00 Lakh for
animal husbandry and fisheries)
8. Under PMFBY, farmer details have to be mandatorily uploaded in the Crop Insurance
Portal, well before; (Within 15 days of cut-off date for enrolment of farmers/debit of
premium for both loanee and non- loanee farmers i.e. 31st July for Kharif and 31st Dec
for Rabi.)

9.. To be eligible for extending the relief measure towards agricultural loans including
rescheduling of loans by banks in case of natural calamity, the crop loss assessed should be;
(Ans.33% or more)

10.. What should be the repayment period of Restructured Agricultural Term Loan in case
of Natural Calamity? (Ans. Up to two years including the moratorium period of one year if
the loss is between 33% and 50% and up to a maximum of five years including the one-year
moratorium period if the crop loss is 50% or more

11. Loans financed for agriculture infrastructure projects under National Agriculture Infra
Financing Facility of Department of Agriculture, Cooperation and Farmer’s Welfare, GOI will
have interest subvention of 3% per annum up to a limit of Rs. …… This subvention will be
available for a maximum period of …. years. (Ans. ₹2 crore and 7 years)
 GOVT SPONSORING SCHEMES LIKE NRLM,NRULM, SHG, ACABC

1. Amount of Revolving Fund assistance to SHGs under DAY-NRLM is _____

(Ans. Minimum of ₹10, 000 and up to a maximum of ₹15,000 per SHG)
2. At least what percentage of loans granted to SHGs under NRLM to be used primarily for
income generating productive purposes? (Ans. 50% of loans above ₹2 lakh, 75% of loans
above ₹4 lakh and 85% of loans above ₹6 lakh
3. At least _____% of the beneficiaries under NRLM should be SC/STs (Ans. 50%)
4. What is the amount that can be financed to an SHG under NRLM in second dose? (Ans. 8
times of the existing corpus or minimum of ₹3 lakh, whichever is higher.
5. Under NRLM, the group should have at least what percentage of members from poor
families? (Ans. 70%)
6. Who is the chairman of BLBC? (Ans. LDM)
7. As per the guidelines of SHG Bank linkage programme, SHGs may be sanctioned savings
linked loans by banks varying from a saving to loan ratio of ______ (Ans.1:1 to 1:4).
8. Loans sanctioned to Self Help Groups for what amount during FY 2020-21 and thereafter
would be eligible for coverage under CGFMU guarantee cover? [Ans. Between Rs.10
lakh and Rs. 20 lakhs. The loan sanctioned to an SHG for any amount between Rs. 10
lakh and Rs. 20 lakhs (say Rs. 11 lakh), the entire loan (irrespective of the loan
outstanding, even if it goes below Rs.10 lakh) would be eligible for coverage under this
guarantee.]
9. What is the maximum loan amount for group enterprises under NULM? (Ans. Rs. 2 Lakh
per member or Rs. 10 Lakh, whichever is lower
10.What should be the Rate of Interest, Banks should charge on loans up to Rs.3.00 Lakhs
under NRLM? (Ans.7% p.a)
11.While opening Savings account of SHGs, Banks should ensure KYC Compliance of; (Only the
office bearers/ Authorised Signatories.