Question

Public sector banks became increasingly important sources of institutional agricultural credit in India. Which major banking policy change in the late 1960s significantly expanded their rural and priority-sector lending role?

Q: Answer-Public sector banks became increasingly important sources of institutional agricultural credit in In...

Public sector banks historically dominant share of institutional agricultural credit expanded significantly following the bank nationalization policy first implemented in 1969, which brought a large share of Indias banking sector under government ownership with an explicit mandate to expand rural branch networks and prioritize lending to sectors like agriculture that had previously been underserved by the largely urban-focused private banking sector of that era.