Published Paper Details:

Priority Sector Lending (PSL) is a mandate by the Reserve Bank of India (RBI) requiring all commercial banks are required to allocate a specific portion of their lending to those sectors which are all deemed to be a vital for the economic development of our country. In the priority sector lending, the Regional Rural Banks (RRBs) also join hands, and in India the goal of establishing RRBs was to provide credit and other financial services to the rural populace, especially the economically disadvantaged segments. The aim of this paper is to investigate and analyse how the Commercial Banks (CBs) and Regional Rural Banks (RRBs) are contributing to the society in terms of lending to the specific sectors like agriculture, micro, small and medium enterprises, education, housing, etc. The study found that both the banks are performing well, and specifically the commercial banks are dominating their role in the area of priority sector lending. The study also statistically found that there is no significant difference in the performance during the study period.