UPSC CSE Prelims
Question 95
Consider the following statements:
- In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
- One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies (PACS).
Which of the statements given above is/are correct?
View correct answer and explanation
Correct answer: B
Correct Option: B (2 only)
Explanation: District Central Cooperative Banks fund and supervise PACS in the cooperative credit structure, but scheduled commercial banks supply a larger total share of short-term agricultural credit than DCCBs.
Statement / Pair / Item-wise Analysis:
1. Incorrect - Scheduled commercial banks collectively provide more short-term agriculture credit than district central co-operative banks.
2. Correct - DCCBs provide finance and credit intermediation to Primary Agricultural Credit Societies.
Option-wise Analysis:
A. Incorrect-includes incorrect item 1 (Scheduled commercial banks collectively provide more short-term agriculture credit than district central co-operative banks); omits correct item 2 (DCCBs provide finance and credit intermediation to Primary Agricultural Credit Societies).
B. Correct-includes all and only valid statements/items 2.
C. Incorrect-includes incorrect item 1 (Scheduled commercial banks collectively provide more short-term agriculture credit than district central co-operative banks).
D. Incorrect-omits correct item 2 (DCCBs provide finance and credit intermediation to Primary Agricultural Credit Societies).