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UPSC 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?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (b) 2 only
Scheduled Commercial Banks supply the bulk (≈60-80 %) of short-term agricultural credit, while District Central Co-operative Banks (DCCBs) account for a much smaller share; therefore statement 1 is incorrect. A core mandate of DCCBs is to channel funds to Primary Agricultural Credit Societies (PACS) and act as a balancing centre for them, making statement 2 correct. Hence only statement 2 is right → option b. ([adda247.com](https://www.adda247.com/question-answer/in-india-which-banks-institutions-have-the-highest-share-in-the-disbursement-of-credit-to-agriculture-and-allied-activities/q.v1.36f76a02-2b12-4b12-aaa1-73c81f2dba7f-en?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2020 Indian Economy question?▼
The correct answer is option (b): 2 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2020, GS Paper 1, as Question 59. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.