The concept of priority sector lending was introduced by Reserve Bank of India in credit policy of 1967-68 to maintain a balance between the growth of different sectors of the economy. Government of India has identified certain sectors of the economy which are suffering from lack of financial assistance. Commercial banks are playing a significant role in reducing the imbalances between different sectors of the economy but what is the role of Regional rural banks known as Gramin banks in providing credit to the notified sectors? Reserve bank of India has prescribed different lending targets for commercial banks and gramin banks. This paper is an attempt to evaluate if gramin banks are meeting the Reserve bank of India norms or not, with special reference to gramins banks in Jharkhand state.