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About: Priority sector lending     Goto   Sponge   NotDistinct   Permalink

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Priority sector lending is lending to those sectors of the economy which may not otherwise receive timely and adequate credit. This role is assigned by the Reserve Bank of India to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro- and small enterprises, education, housing for the poor, and other low-income groups and weaker sections. This is essentially meant for an all-round development of the economy as opposed to focusing only on the financial sector.