(D) To support economic growth
Banks use deposits to extend loans for various economic activities. Cheap and affordable credit helps people grow crops, do business, and set up industries, which is crucial for the country's development.
Source: Chapter 3, Formal Sector Credit in India
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The passage clearly states that cheap and affordable credit is "crucial for the country's development." The RBI also directs banks to lend to small cultivators, small-scale industries, and small borrowers — not just profit-making businesses — confirming the primary purpose is supporting broad economic growth, not competing with institutions or benefiting only MNCs or the primary sector.