Page 176 - DMGT303_BANKING_AND_INSURANCE

Mahesh Kumar Sarva, Lovely Professional University Unit 9: Priority Sector Lending

Unit 9: Priority Sector Lending Notes

CONTENTS
Objectives
Introduction

9.1 Priority Sector Lending
9.2 Other types of Indirect Finance to Agriculture
9.3 Small Scale and Ancillary Industries – RBI Guidelines

9.3.1 Illustrative List of Small Scale Service Business (Industry Related) Enterprises
(SSSBEs)
9.3.2 Illustrative List of Activities which are not Recognised as SSSBEs
[Annexure-II]
9.4 KVI Sector
9.5 Lines of Credit

9.6 Bills Rediscounting
9.7 Revised guidelines on rehabilitation of sick SSI units (based on Kohli Working
Group recommendations)

9.8 State Level Inter Institutional Committee (SLIIC)
9.9 Mode of Disbursement of Loan
9.10 Insurance against Fire and Other Risks
9.11 Self Help Groups
9.12 Micro Credit: A Lifeline for the Poor

9.13 Summary
9.14 Keywords
9.15 Review Questions

9.16 Further Readings
Objectives

After studying this unit, you should be able to:
Define what is Priority Sector, its classification, targets and guidelines of Reserve Bank
of India.
Understand exclusive Reserve Bank of India's guidelines on Small Scale Industries, Tiny
enterprises, Small Scale Service and Business Enterprises and Key Sectoral Finances

Know Self Help Groups and Micro Credit Financing
Introduction

The term priority sector itself suggests that certain sectors of the economy are need to be taken
up on a priority basis for rapid economic development.

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