Published Paper Details:

Abstract Priority sector lending is an important aspect of the banking sector in India, mandated by Reserve Bank of India to ensure that credit reaches sectors of the economy that are considered vital. The PSL framework was introduced to encourage banks to provide credit to key sectors that directly impact employment generation, poverty alleviation, and overall economic development, particularly in rural and backward areas, but often neglected by Public Sector Banks due to risks of profitability concerns. While PSL is essential for promoting inclusive growth, PSBs often encounter systematic and operational hurdles that can hinder their ability to lend efficiently to Proirity sectors. This study made an attempt to examines the difficulties and challenges faced by Public Sector Banks (PSBs) in Priority sector Lending and addressed the measures to be taken by PSBs for effective implementation of PSL including better risk management practices, enhanced financial inclusion initiatives and the use of technology to streamline lending processes.