BANKING AFFAIRS

Detailed explanation-1: -The priority sector lending by commercial banks in India is to agriculture, small-scale industries and the weaker sector of the population. Targeted financing for the areas in an economy which are lagging behind the normal pace of development is called priority sector lending. Was this answer helpful?

Detailed explanation-2: -Housing loans to banks’ own employees will not be eligible for classification under the priority sector.

Detailed explanation-3: -Priority sector lending constitutes the lending to– agriculture, micro and small enterprises, micro credit, education, housing and weaker sections.

Detailed explanation-4: -Introduction to Priority Sector Lending (PSL) Priority Sectors Lending is the role exercised by the RBI to banks, imploring them to dedicate funds for specific sectors of the economy like agriculture and allied activities, education and housing and food for the poorer population.