Prelims 2020 · Agriculture · Question 89
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 Agricultural Credit Societies. Which of the statements given above is/are correct?
Answer
2 only
Statement 1: Incorrect. In short-term agricultural credit, Scheduled Commercial Banks account for the largest share, while DCCBs contribute less than SCBs (and are not the top source overall).
Statement 2: Correct. A core function of District Central Cooperative Banks (DCCBs) is to channel funds to Primary Agricultural Credit Societies (PACS) in the cooperative credit structure.
Therefore, only statement 2 is correct.