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    Question

    Which of the following represents a conventional form of

    lending to weaker sections under the formal sector?
    A Microfinance institutions Correct Answer Incorrect Answer
    B Commercial banks' priority sector lending Correct Answer Incorrect Answer
    C Money lenders Correct Answer Incorrect Answer
    D Selfhelp group bank linkage model Correct Answer Incorrect Answer

    Solution

    Commercial banks engage in priority sector lending as mandated by regulatory authorities like the RBI in India. This includes loans to economically weaker sections, ensuring that essential credit is accessible to those in need.

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