Question
Priority Sector Lending by banks in India constitutes
the lending toSolution
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors. As per the RBI there are eight broad categories of the Priority Sector Lending. They are: (1) Agriculture (2) Micro, Small and Medium Enterprises (3) Export Credit (4) Education (5) Housing (6) Social Infrastructure (7) Renewable Energy (8) The others category includes personal loans to weaker section, loans to distressed persons, loans to state sponsored organisations for SC/ST.
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