What percentage of Adjusted Net Bank Credit (ANBC) are Small Finance Banks (SFBs) required to allocate to Priority Sector Lending (PSL)?

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**Solution:**

1. Priority Sector Lending (PSL) is a mandate by the Reserve Bank of India (RBI) requiring banks to allocate a certain percentage of their Adjusted Net Bank Credit (ANBC) to specified priority sectors such as agriculture, micro, small and medium enterprises, education, housing, etc.

2. For Small Finance Banks (SFBs), the RBI has prescribed a higher PSL target compared to regular commercial banks to promote inclusive growth.

3. As per the latest RBI guidelines, Small Finance Banks are required to allocate **65\%** of their Adjusted Net Bank Credit (ANBC) to Priority Sector Lending.

**Answer:** 65\%

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