Priority Sector Lending by banks in India constitutes the lending to:

Answer: (d) All of the above

All three areas count as priority sector lending, so (d) is correct. RBI's guidelines in force in 2013 listed agriculture and micro and small enterprises as priority sector categories. Advances to weaker sections were also covered, with a sub-target of 10 per cent of Adjusted Net Bank Credit (ANBC) for domestic banks.

• ✓ (a) Agriculture is the first listed category of priority sector lending. For domestic banks it carries its own sub-target within the overall 40 per cent of ANBC target.
• ✓ (b) Micro and Small Enterprises is a separate priority sector category. Advances to it count towards the overall priority sector target.
• ✓ (c) Advances to weaker sections are covered under priority sector lending, with a sub-target of 10 per cent of ANBC (or the credit equivalent of off-balance-sheet exposure, whichever is higher). Each of a, b and c is correct on its own, which makes 'All of the above' the right choice.
• ✓ (d) Agriculture, micro and small enterprises and weaker sections all fall under priority sector lending. Education, housing and export credit are also listed categories, so the three items in the question are only part of the list.

Remember · In 2013 the priority sector categories were agriculture, MSE, education, housing, export credit and others. For domestic banks, weaker sections carried a 10% of ANBC sub-target within an overall 40% of ANBC target.

Question: UPSC Civil Services (Preliminary) 2013, General Studies paper. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). · Report an error