Exams › IBPS PO › General Awareness

Foreign banks having shortfall in lending to priority sector lending target will be required to contribute to:

1. The Rural Infrastructure Development Fund (RIDF) established with NABARD.
2. The funds to be set up with Small Industries Development Bank of India (SIDBI)
3. Finance deficit amount in next financial year.
4. All of the above

Correct answer: The funds to be set up with Small Industries Development Bank of India (SIDBI)

Solution

Under RBI's Priority Sector Lending (PSL) guidelines, foreign banks with shortfall in PSL targets must contribute to the funds to be set up with SIDBI (Small Industries Development Bank of India), not RIDF with NABARD (which applies to domestic banks).

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