Erode district, Tamil Nadu, has set a priority sector lending (PSL) target of ₹36,205 crore for 2026-27 under the Annual Credit Plan. The target covers agriculture, MSMEs, and other priority sectors as defined by RBI guidelines. This plan was finalised through the District Level Review Committee (DLRC) mechanism, with NABARD playing a key coordinating role in aligning credit flow with ground-level developmental needs across the district.

Priority Sector Lending targets at the district level are operationalised through the Annual Credit Plan (ACP), a planning tool coordinated by NABARD in collaboration with the State Level Bankers' Committee (SLBC) and District Consultative Committees (DCCs). Erode's ₹36,205 crore target for 2026-27 reflects the district's agricultural significance — it is known as the 'Turmeric City' and a major hub for handloom textiles, making agriculture and MSME credit particularly critical.

For NABARD Grade A aspirants, this news tests the understanding of how national PSL mandates (RBI mandates 40% of Adjusted Net Bank Credit for PSL) translate into district-level credit planning. NABARD's role here is not merely supervisory — it prepares Potential Linked Credit Plans (PLCPs), funds shortfalls through RIDF (Rural Infrastructure Development Fund), and monitors ACP achievement through quarterly DLRC meetings.

The significance extends to financial inclusion: districts like Erode that have strong agrarian and artisan economies require targeted credit disbursement, and NABARD's refinancing support ensures that even Regional Rural Banks and cooperative banks can meet sector-wise sub-targets. Examiners test whether candidates understand the institutional flow — from RBI PSL norms → NABARD coordination → SLBC → DCC → ACP → DLRC review.