Question
Which of the following grants/ grant direct credit assistance to rural households ?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct anser using the codes given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer:
C
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Explanation:
Regional Rural Banks (RRBs) and Land Development Banks provide direct credit assistance to rural households. RRBs are specifically established to cater to the credit needs of the rural population, including rural households. Land Development Banks also offer credit facilities for agricultural and rural development activities.
On the other hand, the National Bank for Agriculture and Rural Development (NABARD) does not directly grant credit to rural households. NABARD acts as a refinancing institution and provides refinancing facilities to commercial banks, regional rural banks, and cooperative banks for extending credit to agriculture and rural sectors.