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.

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2020 · Q61 · General Studies · 2 marks

    In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up of cold storage facilities by the governments Select the correct answer using the code given below:

    View answer →

  2. 2020 · Q70 · General Studies · 2 marks

    With reference to the Indian economy, consider the following statements: 1. 'Commercial Paper' is a short-term unsecured promissory note. 2. 'Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation. 3. 'Call Money' is a short-term finance used for interbank transactions. 4. 'Zero-Coupon Bonds' are the interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations. Which of the statements given above is/are correct?

    View answer →

  3. 2019 · Q73 · General Studies · 2 marks

    The Chairman of public sector banks are selected by the

    View answer →

  4. 2018 · Q16 · General Studies · 2 marks

    Consider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct?

    View answer →

  5. 2016 · Q4 · General Studies · 2 marks

    The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? 1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks. 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below

    View answer →

  6. 2016 · Q29 · General Studies · 2 marks

    The term 'Core Banking Solution' is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below

    View answer →

  7. 2016 · Q43 · General Studies · 2 marks

    What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI? 1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answer using the code given below

    View answer →

  8. 2016 · Q66 · General Studies · 2 marks

    With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? 1. Bitcoins are tracked by the Central Banks of the countries. 2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address. 3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below

    View answer →