UPSC Prelims 2013 · Question 50 of 99
UPSC Prelims 2013 question on Rural Credit Institutions
- ExamUPSC CSE
- Year2013
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeStatement
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 answer using the codes given below:
Show answer
Answer: C. 1 and 3 only
Analysis
Regional Rural Banks (RRBs) and Land Development Banks directly provide loans and credit assistance to rural households. NABARD mainly functions as an apex refinancing institution and generally provides refinance support to rural financial institutions rather than direct loans to individuals. Therefore, only statements 1 and 3 are correct.
Extra UPSC info
NABARD plays a key role in rural development, agricultural finance, and strengthening cooperative credit institutions.