Priority Sector Lending with Reference to South Canara District Central Co-operative Bank Limited, Mangalore

Abstract

An efficient banking system is necessary for the development of the country. The success and failure of the economy are determined by the role played by the banking sector. Due to lack of financial support, certain sectors were lagging in development. This led to the introduction of priority sector lending with an intention of advancing credit to ignored sector such as agriculture, education, etc. The priority sector lending is a policy guideline by Reserve Bank of India to all the banks in India to provide a 40% of its lending to specific sectors such as agriculture, education, MSMEs, etc.