answer should be minimum 1 page or more

Banking is defined as "Accepting of deposits of the money from public for the purpose of lending and investment". Even though, the banks are given freedom in operations, they cannot lend the entire amount of money that they received from the public by way of deposits. They are required to abide by certain regulatory reserve requirements (Statutory reserve), lending norms like exposure norms and priority sector targets. Explain these norms/targets and reserve requirements with reference to the relevant provisions in Banking regulation Act and RBI Act