Question
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 Bank and Regional Rural Banks.
2. One of the most important functions of DCCBs id to provide funds to the Primary Agricultural Credit Societies.
Which of the statement give above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1nor 2
Answer:
B
To suggest corrections, send feedback using feedback button in top menu.
To suggest corrections, use feedback icon on top menu.
Explanation:
1. Statement 1 is incorrect. In terms of short-term credit delivery to the agriculture sector, Scheduled Commercial Banks and Regional Rural Banks play a more significant role compared to District Central Cooperative Banks (DCCBs). Scheduled Commercial Banks and Regional Rural Banks have a wider reach and larger lending capacity compared to DCCBs.
2. Statement 2 is correct. One of the important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies (PACS). DCCBs act as a link between the State Cooperative Banks and PACS, channeling credit and other financial services to the grassroots level.