Priority Sector Lending by banks in India constitutes the lending to
[UPSC Civil Services Exam – 2013 Prelims]
(b) micro and small enterprises
(c) weaker sections
(d) All of the above
- Initially, in 1974, banks in India were mandated to allocate 33.33% of their total credit to the priority sector. However, this target was later revised based on the recommendation of Dr. K S Krishnaswamy to increase it to 40%.
- Currently, the target for banks is to disburse loans to the priority sector, which includes various segments such as agriculture finance, small enterprises, weaker sections of society, retail trade, microcredit, education loans, and housing loans.
- Therefore, the correct option is number 4, indicating that the current target for banks is to allocate loans to the priority sector.