Direct Answer
Priority Sector Lending is designed to ensure credit reaches marginalized and smaller borrowers affordably. Levying high processing fees defeats the fundamental purpose of financial inclusion
Fee Waiver Thresholds:Loans up to 50,000: ZERO processing or service charges permitted.Loans above 50,000: Banks may apply standard, board-approved processing charges.Target Audience: Micro-borrowers, marginal farmers, and weaker sections.