The aim of the Differentiated Interest Scheme (DIS) introduced by banks in India was to provide concessional loans primarily to which of the following groups?

Introduction / Context:
This question focuses on a social banking initiative in India known as the Differentiated Interest Scheme (DIS). The idea behind such schemes is to support vulnerable groups by offering loans at interest rates lower than the normal commercial rates. Understanding the target beneficiaries of DIS is important in banking awareness and economic policy questions, especially those related to financial inclusion and priority sector lending.

Given Data / Assumptions:

• The scheme mentioned is the Differentiated Interest Scheme (DIS).
• The aim is to provide concessional loans.
• The options list the potential beneficiaries: weaker section of the society, Public Sector Industries, Public Limited Companies and big exports.
• We assume standard policy descriptions of DIS as implemented by Indian banks.

Concept / Approach:
The core idea of DIS is social justice in credit distribution. Under the scheme, banks were encouraged to lend at lower interest rates to economically weaker sections who would otherwise struggle to access affordable credit. These include small farmers, landless labourers, artisans and other low-income groups. The scheme was not designed to subsidise big exporters, large public sector industries or public limited companies, which generally have better access to formal finance at market rates. Therefore, the answer must point to the weaker sections of society as the primary beneficiaries.

Step-by-Step Solution:
Step 1: Identify that the question is about the purpose of the Differentiated Interest Scheme (DIS). Step 2: Recall that DIS was introduced to provide loans at lower-than-normal interest rates to economically weaker sections. Step 3: Review the options: weaker section of society, public sector industries, public limited companies and big exports. Step 4: Recognise that public sector industries, large companies and big exporters are not the intended beneficiaries of concessional interest under DIS. Step 5: Conclude that 'weaker section of the society' is the correct answer.

Verification / Alternative check:
Verification can be done by checking banking history summaries or RBI policy notes which explain that DIS was meant to ease the credit burden on small borrowers, particularly in rural and semi-urban areas. Exam-oriented banking awareness books also clearly state that concessional interest under DIS is directed towards weaker sections, rather than big business or exporters. This consistent explanation across multiple reputable sources confirms the correct target group.

Why Other Options Are Wrong:

• Public Sector Industries: These are generally large entities with access to institutional finance at market-linked rates; they are not the focus of DIS concessional lending.
• Public Limited Companies: Large companies can raise capital from markets or banks under normal commercial terms, and DIS is not designed for their benefit.
• Big exports: While exporters may receive other incentives and credit facilities, they are not the primary beneficiaries of the Differentiated Interest Scheme aimed at weaker sections.

Common Pitfalls:
Some candidates may overthink the question and assume that concessional schemes must be tied to export promotion or industrial growth, leading them to pick big exports or public sector industries. Another mistake is not remembering the specific reservation concept behind DIS, which is focused on equity and inclusion rather than growth of large enterprises. To avoid such errors, it helps to categorise financial schemes into those for development of the poor and those for industry or exports, and to associate each scheme with its primary target group in your notes.

Final Answer:
The Differentiated Interest Scheme was introduced to extend concessional loans mainly to the weaker section of the society.