Priority Sector Lending Subject: Economy Section: Economic Growth Context: Priority Sector Lending means lending credit by the banks to those sectors which are considered  important for the development of the basic needs of the country by the Government and the RBI.The banks are mandated to encourage the growth of such sectors with adequate […]

Subject: Economy Context: Banks that are not able to lend under priority sector on their own, can make outright purchases of such lending from other banks and also buy Inter Bank Participation Certificates Recent change announced by the Reserve Bank of India in PSL is to remove the imbalance among different geographical areas. Concept: Priority […]

Subject: Economy Context: The Reserve Bank of India (RBI) decided to broaden the scope of priority sector lending (PSL) by including start-ups and enhancing borrowing limits for renewable energy sectors. Concept: Priority Sector refers to those sectors of the economy which may not get timely and adequate credit. Priority Sector Lending is an important role […]