gs1medium

Priority Sector Lending by banks in India constitutes the lending to:

  1. A.Agriculture
  2. B.micro and small enterprises
  3. C.weaker sections
  4. D.All of the above
▶ Answer & Explanation

Correct answer: D. All of the above

Priority Sector Lending (PSL) guidelines in India are designed to ensure that banks provide adequate credit to critical sectors of the economy. These sectors are identified based on their contribution to growth, employment, and inclusive development. The Reserve Bank of India periodically revises these guidelines to align them with the country's evolving economic priorities. Therefore, lending to agriculture, micro and small enterprises, and weaker sections all fall under the ambit of priority sector lending.

Source: UPSC gs1 2013

Practice this question with answer tracking

Track your performance, build spaced repetition reviews, and see your weak areas.

Start practising free →