<h1>Bank credit expansion: PSBs to boost lending and MSME support while strengthening fintech, inclusion, and prudential practices.</h1> Public sector banks are directed to increase domestic credit supply to support economic growth, building on the Government's 4R approach-recognition, resolution, recapitalisation and reforms-which has reduced stressed assets and recapitalised banks. Banks committed to accelerate overall credit growth and to prioritise lending under targeted programmes, including housing finance under the Pradhan Mantri Awas Yojana and enhanced support to micro, small and medium enterprises through the MSME Restructuring Scheme. Operational commitments include faster loan turnaround using fintech, advanced data analytics and AI for credit decisions and monitoring, and sustained performance improvements by PCA banks to exit the PCA framework.