Priority sector lending

Priority sector lending means some banks are required to lend money to certain kinds of businesses or people. It means these certain kinds of businesses or people get to borrow money from the bank more easily than other businesses or people. These certain kinds of businesses or people are usually ones that help the most people and can help the economy grow. So the government makes sure the banks lend money to these businesses or people. That way, more people can get jobs, buy things and help the economy grow.