Question

Which of the following categories comes under priority sector?
1. Export Credit
2. Agriculture
3. Social Infrastructure
4. Renewable Energy
5. All of the above

Answer 1

Correct Answer - Option 5 : All of the above

The correct answer is All of the above

• 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 a 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 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 organisations for SC/ST.