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?
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (b)
Explanation:
- Schedules bank contributes to about 70-80% share in agricultural and allied credit. Though co-operative institutions also play a significant role in providing finance to the agriculture sector which stands at 15-16%, hence not as much as Scheduled banks, hence statement 1 is incorrect.
- DCCBs provide funds directly either to PACs or to the farmers for excavation of wells, purchase of pump sets to horticulture, animal husbandry, and even rural transport like tractors and other farm equipment, etc. Hence statement 2 is correct.
