New Delhi, March 30 -- Reserve Bank of India (RBI) endeavours to maintain sufficient liquidity in the banking system to ensure that the productive requirements of the economy, including the rural sector, are met and transmission to market rates remains robust.

According to a statement released by the Finance Ministry, "the Government has taken various measures to ensure uninterrupted credit flow for rural development initiatives, including SHGs."

The Priority Sector Lending (PSL) guidelines of RBI issued to banks and Ground Level Agriculture Credit (GLC) targets by the Government to banks act as key policy instruments in scaling up Kisan Credit Card (KCC) coverage and enhancing institutional credit to farmers.

As per PSL guidelines iss...