Consider the following statements :
- 1.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.
- 2.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 ?
Show answer
Answer: B. Statement 1 is wrong: scheduled commercial banks give far more short-term agricultural credit than DCCBs and RRBs. Statement 2 is correct: DCCBs, the middle tier of the cooperative system, fund the Primary Agricultural Credit Societies at village level. So only 2.
Watch for: Cooperatives are seen as the farmers' banks, so students assume they lend the most.
Why the other options are wrong
- A. Wrong because commercial banks, not DCCBs, give the largest share of farm credit.
- C. Wrong because statement 1 is false.
- D. Wrong because statement 2 is correct.
Source to check: NABARD Annual Report; RBI Report on Trend and Progress of Banking in India (cooperative banks chapter)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.