Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector,…
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?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Scheduled Commercial Banks dominate short-term agricultural credit (~60% share); DCCBs deliver less than SCBs — 1 wrong. A key function of DCCBs is to provide funds to PACS — 2 correct. Answer: (b).