Tag: Priority sector lending

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Public sector banks have seen significant recapitalization, yet credit delivery to priority sectors remains sluggish. Examine the reasons behind this paradox. Suggest structural reforms to address it.

Topic: Money and Banking Q6. Public sector banks have seen significant recapitalization, yet credit delivery to priority sectors remains sluggish. Examine the reasons behind this paradox. Suggest structural reforms to address it. (10 M) Difficulty Level: Easy Reference: InsightsIAS Why the question: In light of massive PSB recapitalization over the past few years, yet persistent …

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Co-Lending Model- Bank-NBFC co-lending:

GS Paper 3: Topics Covered: Inclusive growth and issues arising out of it.   Context: In September 2018, the RBI had permitted the banks to co-lend with all registered NBFCs (including HFCs) to increase lending to the priority sector based on a prior agreement. Following this, several banks have entered into co-lending ‘master agreements’ with …

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