Q59. 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 AgriculturalCredit Societies.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: B
- Statement 1 is not correct: According to a report of the RBI, in 2016-17, scheduled commercial banks contributed the major Share (78- 80%) in agricultural and allied credit. Cooperative institutions also play a significant role in extending agricultural credit and the share of all cooperative banks/institutions (i.e. SCBs, DCCBs and PACSs put together) constituted 15-16%. The RRBs contributed the remaining 5% of the agricultural credit.
- Statement 2 is correct: The role of the DCCBs is to give financial assistance to the primary co-operative societies affiliated to it in the district. One of these societies is the Primary Agricultural Credit Societies. Hence, one of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
Visit our YouTube Channel – here
