Which one of the following represents priority sector lending by commercial banks in India?

Lending to heavy industries

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Lending to agriculture, small-scale industries and the weaker sections of the population

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Lending to foreign companies

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Lending to state governments in emergency situations like floods and droughts

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Lending to agriculture, small-scale industries and the weaker sections of the population
The priority sector lending by commercial banks in India is to agriculture, small - scale industries and the weaker sector of the population. Targeted financing for the areas in an economy which are lagging behind the normal pace of development is called priority sector lending.

Suggest Corrections

Similar questions

Q. In terms of lending, priority sectors like agriculture, small scale industries and small retail trade constitute _____________ percent of total bank lending.

Q. Which of the following is an innovative mechanism adopted by banks to meet the targets fixed for lending to priority sector by the Banks?

94. Priority Sector Lending by banks in India constitutes the lending to [2013 - I]

Q34) Priority sector lending by banks in India constitutes the lending to which of the following sectors?

i) Medium Enterprises

ii) Social Infrastructure

iii) Renewable Energy

iv) Import credit

Q. 76. The Planning Commission was established in 1950 through a Government resolution to formulate long-term development Plans and to recommend them to the Union Cabinet. In framing its recommendations, the Commission has to act in close understanding and consultation with the ministries of the Central government and the governments of the States. The responsibility for policy decisions and implementation rests with the Central and State governments. Many have regarded and some still regard, that the Indian Plans are modelled on Soviet-type "command" planning. This is true only to the extent that there was considerable emphasis, particularly in the Second and Third Plans, on creation of a heavy industrial base under the auspices of the State. Under the aggressive intellectual leadership of Prof. P.C. Mahalanobis and a few other technical experts of the Commission, this objective was given a pride of place in development planning. Subsequently, as a result of severe difficulties, higher priority was accorded to agriculture. The Industrial policy resolutions of 1948 and 1956 provided the basic framework of industrial development and regulation. The Industrial policy Resolution of 1948 envisaged careful planning and integrated effort and that a progressively increased role will be assumed by the Central and State governments in the process of economic growth and in industrial development in particular, by the public sector within a mixed economy. It demarcated industries between the public and private sectors, providing for exclusive monopoly of the basic and infrastructural industries to the former. The Industrial policy Resolution of 1956 gave priority to development of heavy industries and machine-making industries, expansion of public sector, besides promoting the co-operative sector.
Consider the following assumptions regarding the above passage.
1. The recommendations of Planning Commission is mandatory for Union and State governments.
2. Under industrial policy resolution 1948 both union government and state governments have to take some initiatives for economic growth through public sector undertakings.
3. The industrial policy resolution 1956 has prioritized heavy industries, machine making industries and cooperative sector through public sector undertakings.

Join BYJU'S Learning Program