In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
[UPSC Civil Services Exam – 2011 Prelims]
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
Answer: (a)
Explanation:
- Within the agriculture sector the allied sectors like horticulture, animal husbandry, dairy and fisheries, have an important bearing on the overall economic growth.
- Public sector lending (PSL) is mandated by the Reserve Bank of India (RBI), making it a requirement for domestic and foreign banks to offer loans to specific sectors and sub-sectors within the nation’s economy.
- At present, institutional agricultural credit is mainly disbursed by commercial banks, cooperative banks and Regional Rural Banks (RRBs) under the multi-agency approach.
- The commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.