Prelims 2020 · Agriculture · Question 89
Consider the following statements:
- In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
- One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
Answer
2 only
Statement 1: Incorrect. In short-term agricultural credit, Scheduled Commercial Banks account for the largest share, while DCCBs contribute less than SCBs (and are not the top source overall).
Statement 2: Correct. A core function of District Central Cooperative Banks (DCCBs) is to channel funds to Primary Agricultural Credit Societies (PACS) in the cooperative credit structure.
Therefore, only statement 2 is correct.