economics medium MCQ

Which of the following sectors is NOT explicitly categorized under the Priority Sector Lending (PSL) guidelines issued by the RBI?

  1. Renewable Energy
  2. Micro, Small and Medium Enterprises (MSMEs)
  3. Real Estate development for luxury housing
  4. Social Infrastructure (Schools, Hospitals)

Answer: Real Estate development for luxury housing

Priority Sector Lending mandates banks to direct 40% of their credit to sectors vital for inclusive growth but which might otherwise struggle to secure formal finance. This includes agriculture, MSMEs, education, housing (up to specific affordable limits), and renewable energy. Luxury real estate is a commercial, profit-driven venture and is strictly excluded from PSL.

Topic Banking - Priority Sector
Exam Relevance Banking, SSC, UPSC
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