EAC-PM Advocates for Social Equity in India's Priority Sector Lending
EAC-PM proposes social equity-led approach for priority sector lending
Business Standard
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The Economic Advisory Council to the Prime Minister (EAC-PM) of India has proposed a review of the country's priority sector lending (PSL) norms. The council emphasizes shifting the focus from economic targets to enhancing credit access for vulnerable groups, aiming to promote social equity.
- 01EAC-PM calls for a review of India's priority sector lending framework.
- 02The focus is shifting from economic targets to social equity.
- 03The proposal aims to improve credit access for vulnerable groups.
- 04Mandatory lending targets may be narrowed to enhance effectiveness.
- 05This approach seeks to address social inequalities in credit distribution.
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The Economic Advisory Council to the Prime Minister (EAC-PM) has proposed a significant shift in India's priority sector lending (PSL) framework. The council recommends narrowing the mandatory lending targets from purely economic objectives to a focus on social equity. This approach aims to improve credit access for vulnerable groups, ensuring that financial resources are more equitably distributed across society. By prioritizing social equity, the EAC-PM seeks to address existing inequalities in credit distribution and enhance the overall effectiveness of the PSL framework. This proposal highlights the need for a more inclusive financial system that supports marginalized communities and promotes equitable economic growth.
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This proposal could lead to increased financial support for marginalized communities, improving their access to credit and fostering economic inclusion.
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