2013
Q. 100
Set A
Economy
Banking
Which of the following grants/grant direct credit assistance to rural households?
- Regional Rural Banks
- National Bank for Agriculture and Rural Development
- Land Development Banks
Select the correct answer using the codes given below.
Smart Elimination
NABARD is a 'Bank for Banks' (Refinance Agency). You cannot walk into NABARD and open an account or take a loan as a farmer. Eliminate 2. This leaves Option C.
Potential Trap
NABARD provides refinance, not direct credit to households.
Answer Key & Explanation
Answer: CThe correct answer is Option C.
Analysis:
- Regional Rural Banks (RRBs): Set up to provide direct credit to small farmers, artisans, and rural households. (Correct)
- NABARD: It is an apex development bank. It provides refinance to banks (Cooperatives, RRBs) and manages RIDF. It generally does not grant direct credit to individual rural households. (Incorrect)
- Land Development Banks: (Now State Cooperative Agriculture and Rural Development Banks). They provide long-term direct credit to farmers for land improvement, tractors, etc. (Correct)
Therefore, 1 and 3 provide direct assistance.
Value Addition
- NABARD: Established in 1982 (Shivraman Committee).
- RRB: Established in 1975.
Topic Trend (2011-2025)
Visualize the frequency of this topic across past year papers. Click on any bar to see questions.
Questions
No Questions
Difficulty Assessment
medium
Foundational question based on core concepts.