Priority Sector Lending Of Commercial Banks And Its Impact On The Development Of The Rural Economic Status In India

Rachita Ota
2016 unpublished
A line from the speech of our Honorable Prime Minister at the occasion of Independence Day---"In Pyramid of Development the bottom-most layer needs to be strengthened through Financial Inclusion improving purchasing power of the poor." He stated that the major development is required at the bottom of the Pyramid, a concept well focused by C K Prahalad, who stated that India lies at the bottom level which comprises of the major masses. For the overall holistic development of the Indian economy
more » ... he Indian economy we have to develop the large masses. The Financial Inclusion has turned out to be the best tool for this development. Priority Sector lending is one of the means to infuse capital in the economic system to finance the growth and development of the key sectors of the economy. This article would be highlighting the concept of Priority Sector lending and the role played by the banking system in India. We would also like to focus on the impacts of these Priority Sector Lending in Rural India and on its economy and growth.