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  1. Commercial banks lend to which of the following Priority sectors ?
    1. Heavy Industries
    2. Agriculture, Small scale industries
    3. Foreign Companies
    4. State Government in emergency situation
Correct Option: B

Priority sector lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, and weaker sections. It aims to ensure that adequate institutional credit flows into some of the vulnerable sectors of the economy, which may not be attractive for the banks from the point of view of profitability.



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