- Concept: Priority sectors are those that may not get timely and adequate credit otherwise.
- Banks are mandated to lend a certain percentage of their total credit to these sectors.
- It includes small value loans to sectors impacting large populations and weaker sections.
- Examples: Agriculture, MSME, Education, Housing, Renewable energy, Social Infrastructure.
- Importance for Inclusive Growth:
- Ensures credit flow to needy segments and employment-intensive sectors.
- Helps in inclusive growth by supporting small and marginal farmers, artisans, SC/ST.
- Addresses regional disparities in credit flow.
- Promotes overall development of the rural sector.