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When a PSLC is sold, what passes to the buyer?
AOnly the loan asset
BBoth risk and asset
CBoth cash and asset
DOnly the obligation
Answer & Solution
Correct answer: D. Only the obligation
1. The seller sells fulfilment of a priority sector obligation.
2. The buyer buys that same fulfilment.
3. No risk and no loan asset move at all.
_Source: RBI Master Directions, Priority Sector Lending (Targets and Classification) Directions, 2025_
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