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The Economic Times

Economy / The Economic Times

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Priority sector lending boosts inclusion, not always guarantee growth: EAC-PM

India's priority sector lending has aided financial inclusion for decades. However, a recent report suggests that simply increasing directed credit might not lead to higher economic growth. The analysis indicates that while these policies have helped reduce poverty, forcing credit into poorer districts may be inefficient. Priority Sector Lending Certificates help banks manage risks associated with these loans.

25 May 2026 11:06 am