Priority Sector refers to those sectors of the economy which may not get timely and adequate credit.
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors.
The sectors may be agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.
This is essentially meant for an all round development of the economy as opposed to focusing only on the financial sector.
As per the RBI circular released in 2016, there are eight broad categories of the Priority Sector Lending.
They are: (1) Agriculture (2) Micro, Small and Medium Enterprises (3) Export Credit (4) Education (5) Housing (6) Social Infrastructure (7) Renewable Energy (8) Others.
The others category includes personal loans to weaker section, loans to distressed persons, loans to state sponsored organizations for SC/ST. Marketing Part 1 – https://youtu.be/pLJXofmpkiM
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