PSLC Full Form
PSLC full form refers to Priority Sector Lending Certificate. It’s one kind of tool promoting comparative advantages between the Banks. To reach priority sector targets banks can purchase PSLC certificate from other Banks.
RBI given targets to banks to lend minimum 40 percent to priority sector advances. Few banks couldn’t able to achieve the targets.
PSLC certificate are very helpful to banks to achieve their targets. In case of shortfall targets banks are required to invest in Rural Infrastructure Development Fund.
PSLC certificates are expired on 31st March every year. Nothing but end of the financial year PSLC certificate are expired.
Who issues PSLC Certificates
Banks issues PSLC certificate when they reach their priority sector targets. After reaching targets excess lending in priority sector bank can sell to other banks. Other banks not reached the target they can purchase PSLC certificate from RBIs E Kuber portal. On April 07 2016 RBI launches E Kuber platform enable PSLC trading.
TYPES OF PSLC
PSLC certificates are 4 types.
1) PSLC Agriculture
2) PSLC General
3) PSLC SF/MF
4) PSLC micro enterprises