Ministry Of Finance

Banks have to lend a minimum of 40% to the priority sector, which includes all of the given sectors. 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 a few specific sectors, like: - Agriculture and allied activities, - Micro and small enterprises, - Poor people for housing, - Students for education, and - Other low-income groups and weaker sections. This is essentially meant for all-round development of the economy as opposed to focusing only on the financial sector.

Business Correspondents (BCs) or Bank Saathis are agents appointed by banks to provide basic banking services in rural and unbanked areas where setting up a full-fledged branch might not be feasible. They act as a bridge between the bank and the local population, offering essential financial services **Statement 1 is correct:** BCs can help villagers access government subsidies and social security benefits electronically deposited into their accounts. This eliminates the need to travel long distances to banks and reduces the risk of cash handling. **Statement 2 is correct:** Villagers can deposit their savings or withdraw cash through BCs, promoting financial inclusion and facilitating small transactions without requiring them to visit a bank branch. Therefore, both options (1 and 2) are the facilities that beneficiaries can avail through Business Correspondent services.

PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all households in the country. The plan envisages: - Universal access to banking facilities with at least one basic banking account for every household. - Financial literacy. - Access to credit. - Insurance and pension facility.

Pradhan Mantri MUDRA Yojana (PMMY) is aimed at providing affordable credit to micro and small enterprises (MSEs) in the non-farm sector. Here's a breakdown of its key objectives - **Financial Inclusion:** MUDRA helps bring unbanked or underserved entrepreneurs into the formal financial system, enabling them to access loans from banks and other financial institutions. - **Loan Products:** The scheme offers a range of loan products categorized under three categories based on loan amount Shishu (up to Rs. 50,000), Kishore (above Rs. 50,000 up to Rs. 5 lakh), and Tarun (above Rs. 5 lakh up to Rs. 10 lakh). - **Focus on Non-Farm Sector:** MUDRA loans cater to income-generating micro enterprises engaged in manufacturing, trading, or service activities. - Activities allied to agriculture, like poultry, dairy, and beekeeping, are also included. Hence, option A is the correct answer.