economics medium Fill in the Blank

Under the Priority Sector Lending (PSL) guidelines, domestic commercial banks are required to lend ___% of their Adjusted Net Bank Credit (ANBC) to specified priority sectors.

  1. trust (or confidence / faith)
  2. two
  3. 40
  4. 75

Answer: 40

The 40% target ensures that credit flows to vital but often neglected sectors like agriculture, micro, small and medium enterprises (MSMEs), education, and housing. It is a key instrument for promoting financial inclusion and balanced regional development in India.

Topic Banking - PSL
Exam Relevance Banking, SSC, UPSC
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