Priority Sector Lending: An Analysis

Abstract

Priority Sector Lending is a concept introduced by the Reserve Bank of India for the development of weaker sections of society through these rural areas. However, there is not too much development in the rural area so the Reserve Bank of India introduced a new scheme to develop rural areas i.e. The Regional Rural Bank. The study aims to know the impact of Priority Sector Lending on the income and employment level of respondents and its impact on the performance of KGB during the study period. The study concludes by stating that business size and lending of the banks to the agriculture and housing sectors are found to be more efficient, than lending for the education, MSMEs, and other priority sectors. At the same time, the standard of living of the people can be improved.