UPSC Previous Year Question | Prelims GS | 2020

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?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

2 only

Explanation

Scheduled commercial banks deliver most short-term agricultural credit, more than DCCBs, so statement 1 is wrong. DCCBs are the middle tier of the short-term cooperative structure and finance PACS, so statement 2 is correct.

Topics: agricultural credit, agriculture & rural development, cooperative credit structure - dccbs, economy