Question

ANBC is the net bank credit plus investments made by banks in non-SLR bonds held in the held-to-maturity category or credit equivalent amount of off-balance-sheet exposure, whichever is higher. What does ‘C’ stand-in ANBC?
1. Credit
2. Cash 
3. Category 
4. Commerce 
5. None of the above

Answer 1

Correct Answer - Option 1 : Credit

The correct answer is Credit.

• C Stands for Credit in ANBC.

• ANBC- stands for Adjusted Net Bank Credit.
• ANBC is the net bank credit plus investments made by banks in non-SLR bonds held in the held-to-maturity category or credit equivalent amount of off-balance-sheet exposure, whichever is higher.

• Social Infrastructure-
  • Bank loans up to a limit of 50 million per borrower for building social infrastructure for activities namely schools, health care facilities, drinking water facilities and sanitation facilities under priority sector.
  • Bank credit to Micro Finance Institutions (MFI) extended for on-lending to individuals/ members of SHGs/ JLGs for water and sanitation facilities are also eligible for classification as priority sector loans under ‘Social Infrastructure’ subject to certain criteria.
• Education-
  • Loans to individuals for educational purposes including vocational courses up to 1 million irrespective of the sanctioned amount are eligible for classification under the priority sector.
• Renewable Energy-
  • Bank loans up to a limit of 150 million to borrowers for purposes like solar-based power generators, biomass-based power generators, windmills, micro-hydel plants, and for non-conventional energy based public utilities viz. street lighting systems, and remote village electrification are eligible to be classified under priority sector loans under ‘Renewable Energy’.
  • For individual households, the loan limit is 1 million per borrower.