The Impact of Loans to the Priority Sector

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Priority Sector Lending (PSL) fosters inclusive growth by addressing credit gaps, supporting MSMEs, and boosting rural development. Mandated by RBI, PSL improves education, crop productivity, and equitable development despite challenges like loan recovery risks. Insights from a bank manager highlight the role of technology and government schemes. Recommendations emphasize balancing profitability with social impact, leveraging digital innovations, and enhancing borrower capacity for...