Priority Sector Lending (PSL) is an important policy tool in India's banking framework because certain sectors may remain underserved if credit allocation is left entirely to market incentives. PSL is intended mainly to ensure credit flow to:

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Economics · Priority Sector Lending

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sectors of strategic social and economic importance that may otherwise be underfinanced

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Recommended practice questions in Economics · Priority Sector Lending

Which of the following territories was annexed by Lord Dalhousie under the pretext of misgovernance, and not directly through the Doctrine of Lapse?

What was the primary stated reason for the Partition of Bengal in 1905 by Lord Curzon?

Answer 1

government departments and statutory bodies only

Answer 2

high-net-worth individuals with established collateral

Answer 3

foreign-owned firms operating in special economic zones

Answer 4

sectors of strategic social and economic importance that may otherwise be underfinanced

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