The scope and extent of priority sector has undergone several changes since the introduction of the concept. While there has been continuous demand to include new areas within the ambit of priority sector, there have also been suggestions that the focus on the needy sectors of economy and weaker sections of the society is getting diluted because of such inclusions.

A need has, therefore, been felt to review the concept and the segments of priority sector. Accordingly, an Internal Working Group under the Chairmanship of Shri C.S.Murthy, Chief General Manager-in-Charge, Reserve Bank of India, Rural Planning and Credit Department, Central Office was set-up for the purpose of examining the issues. The Group examined the need for continuance of priority sector lending prescriptions, reviewed the existing policy on priority sector lending including the segments constituting the priority sector, targets and sub-targets, etc., examined the suggestions received regarding eligibility criteria of various items under priority sector and related aspects. The Working Group has prepared a Draft Technical Paper on Review of Priority Sector Lending. The Reserve Bank of India has placed the Draft Technical Paper on its website (www.rbi.org.in). Views/ comments on the Technical Paper may be faxed to 022- 22658276 or 2265 8273.