Regional Rural Banks will have a target of _______ of total outstanding for priority sector lending in Agriculture.

The correct answer is 18%.

• ​The priority sector lending is mainly intended to ensure the financial assistance to those sectors of the economy which has not received adequate support of financial institutions.
• The Reserve Bank of India defined priority sectors as the sectors of the economy involving Agriculture, Finance, Retail Trade, Small Enterprises, Education Loans, Micro Credit and Housing Loans.
• RBI sets and revises the limits of loans regarding these sectors according to the requirements of the economy.
• As per it, Regional Rural Banks will have a target of lending 75% of their total outstanding to these Priority Sectors
• RRBs will have a sub-target of lending 18% loan if their total advances to Agriculture.