Question
Priority Sector Lending by banks in India constitutes the lending to
(a) agriculture
(b) micro and small enterprises
(c) weaker sections
(d) All of the above
Answer:
D
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Explanation:
Priority Sector Lending by banks in India constitutes the lending to multiple sectors that are considered priority sectors for inclusive and sustainable economic development. These sectors include:
(a) Agriculture: This includes loans provided for farming activities, agricultural infrastructure, and allied activities.
(b) Micro and Small Enterprises: This includes loans provided to micro and small enterprises (MSEs) for their establishment, expansion, or modernization.
(c) Weaker Sections: This includes loans provided to individuals or groups belonging to socially and economically disadvantaged sections of society, such as scheduled castes and scheduled tribes.
(d) Other sectors: Priority Sector Lending also includes lending to sectors like education, housing, export credit, renewable energy, and others as specified by the Reserve Bank of India (RBI) from time to time.