Priority Sector Lending in India

Priority Sector Lending (PSL) is a regulatory requirement for banks in India to allocate a certain percentage of their lending to key economic sectors that are considered vital for economic development. This includes agriculture, which is foundational for rural development; micro and small enterprises, which generate employment; and weaker sections of society including SC/ST populations and low-income groups. All three categories are integral components of PSL as defined by RBI guidelines. Banks are required to allocate a minimum percentage of their net bank credit to these priority sectors. > PSL encompasses agriculture, MSMEs, and weaker sections simultaneously. Answer: (d).