PRIORITY SECTOR LENDING – A REVIEW
(This article was presented in the National Seminar at SR&BGNR College Khammam, AP - India)
-Dr. S. Vijay Kumar
The origin of priority sector prescriptions for banks in
can be traced to the Credit Policy for the year 1967-68, wherein it was emphasized that commercial banks should increase their involvement in the financing of priority sectors, viz., agriculture, exports and small-scale industries, as a matter of urgency. However, the description of the priority sector was formalized in 1972 on the basis of the report submitted by the Informal Study Group on Statistics relating to advances to the Priority Sectors constituted by Reserve Bank in May 1971. On the basis of this report, Reserve Bank prescribed modified priority sector advances and certain guidelines in February 1972, indicating the scope of the items to be included under various categories of priority sector. In most of these cases, the guidelines indicated only the general description of the advances to be included and no ceilings were fixed, except in the case of small-scale industry and road and water transport operators where ceilings on the value of original investments were indicated. India
Nationalization of banks and after:
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