Priority Sector Lending (PSL) PSL are small value loans to t | UPSCPrelimsZone

Priority Sector Lending (PSL)

PSL are small value loans to those sectors of the society/economy that impact large segments of the population and weaker sections, and to the sectors which are employment intensive such as agriculture and small enterprises.

Scheduled Commercial banks are mandated to give a portion (40%) of their credit/loan to the priority sectors.

The following have been declared as the priority sectors by RBI:

Agriculture
Education
Housing
Micro, Small & Medium Enterprises (MSME)
Export Credit
Social Infrastructure (Schools, hospitals etc)
Renewable Energy
Others (weaker sections like artisans, village cottage industries, SC/ST, Self Help Groups etc.)
Start-ups have also been included under PSL norms

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