The correct answer is Loans being given to small-scale industries, agriculture, small businesses, etc. The RBI mandates banks to lend a certain portion of their funds to specified sectors, like agriculture, Micro, Small, and Medium Enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy among others. All scheduled commercial banks and foreign banks (with a sizable presence in India) are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors. Regional rural banks, co-operative banks, and small finance banks have to allocate 75% of ANDC to PSL. The PSL guidelines were last reviewed for commercial banks in April 2015 and for Urban Co-operative Banks (UCBs) in May 2018. Additional InformationRepo Rate - It is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Reverse Repo rate - It is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. Statutory Liquidity Ratio - It is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold, or other securities. Cash Reserve Ratio - The percentage of cash required to be kept in reserves, vis-a-vis a bank's total deposits, is called the Cash Reserve Ratio.