UPSC CSE Prelims
Question 6
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.
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Regional Rural Banks and Land Development Banks can lend to rural households; NABARD primarily finances and refinances rural financial institutions rather than granting routine retail credit.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - Regional Rural Banks give direct farm and other rural credit to eligible borrowers.
Statement/Item 2: Incorrect - NABARD principally provides refinance and institutional support; it is not a regular direct-loan bank for households.
Statement/Item 3: Correct - Land Development Banks historically extend long-term loans to farmers for land and agricultural investment.
Option-wise Analysis:
A: Incorrect - includes false item 2 and excludes true item 3.
B: Incorrect - includes false item 2 and excludes true items 1, 3.
C: Correct - selects all and only the accurate statements/pairs.
D: Incorrect - includes false item 2.