Less than 10% of districts account for over 45% of priority-sector lending, exposing sharp regional disparities
More lending alone cannot drive growth where infrastructure, connectivity and institutional capacity remain inadequate
Banks fulfil PSL targets through varying mixes of direct lending, certificates and infrastructure-linked mechanisms
Reform panels have repeatedly argued that rigid credit mandates can create inefficiencies in lending
MSMEs now lead PSL allocations, while sectors such as green energy and digital infrastructure remain outside its scope
Greater flexibility, sharper targeting and stronger market mechanisms can make PSL more effective