Civil Services Prep

Prelims 2013 · Agriculture · Question 50

Which of the following grants/grant direct credit assistance to rural households?

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below.

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

1 and 3 only

  1. Regional Rural Banks — They are scheduled commercial banks created to provide direct credit to rural households, especially small/marginal farmers, artisans and weaker sections. Verdict: Correct.

  2. National Bank for Agriculture and Rural Development (NABARD) — NABARD is an apex refinance and development institution; it mainly provides refinance/support to banks, not direct credit to rural households. Verdict: Incorrect.

  3. Land Development Banks — These cooperative institutions provide direct long-term credit to farmers/rural borrowers for land development and agricultural investment. Verdict: Correct.

Hence, 1 and 3 only grant/directly provide credit assistance to rural households.

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