Q59 · UPSC Prelims 2020 · Set A · Economy

← Q58 Q60 →

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 Banks and Regional Rural Banks.2.One of the most important functions of DCCBs is to provide funds to the Primary Agriculture Credit Societies.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (b) 2 only

Explanation

  1. A

    1 only

    1 only. SCBs/RRBs, not DCCBs, dominate short-term agri credit by volume.

  2. B

    2 only

    2 only. A core DCCB job is to fund PACS.

  3. C

    Both 1 and 2

    Both. Statement 1 fails.

  4. D

    Neither 1 nor 2

    Neither. Statement 2 holds.

Summary. Official key is (b) 2 only. District Central Cooperative Banks refinance Primary Agricultural Credit Societies. They do not out-lend Scheduled Commercial Banks and RRBs in short-term agriculture credit.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2021 · Q5 · General Studies · 2 marks

    With reference to 'Urban Cooperative banks' in India consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

    View answer →

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