Priority Sector Lending by Regional Rural Banks : A Case Study on Jharkhand Rajya Gramin Bank

Priority Sector Lending is a scheme launched by the Government of India to provide lending services to areas where development is slow or negligible. The Reserve Bank of India periodically issues various guidelines for priority sector lending, which every bank must follow. Each Regional Rural Bank is also mandated to provide 75% of its total outstanding loans to priority sectors. It also evaluates the performance of rural banks, as the primary objective of regional rural banks is to provide credit and finance in rural areas. Jharkhand Rajya Gramin Bank's performance in providing credit to priority sectors is commendable. Jharkhand Rural Bank has provided 91.39% of credit to the priority sector.