Which of the following provides the largest credit to agriculture and allied sectors?

Cooperative Banks
Regional Rural Banks
Commercial Banks
Cooperative and Regional Rural Banks jointly. Ans. c

The correct answer is (c) Commercial Banks.

Commercial banks are the largest providers of credit to agriculture and allied sectors in India. They provide a wide range of loans and advances to farmers, including short-term loans for seasonal agricultural operations, medium-term loans for investment in agricultural assets, and long-term loans for land purchase and development.

Cooperative banks are also important providers of credit to agriculture, but they play a smaller role than commercial banks. They offer a range of loans and advances to farmers, but they are more focused on providing small loans to small farmers.

Regional Rural Banks (RRBs) are a type of cooperative bank that was established in India in the 1970s to provide credit to rural areas. They offer a range of loans and advances to farmers, but they play a smaller role than commercial banks and cooperative banks.

The following table shows the share of credit provided to agriculture and allied sectors by different types of banks in India in 2019-20:

| Type of bank | Share of credit (in %) |
| — | — |
| Commercial banks | 58.8 |
| Cooperative banks | 25.6 |
| Regional Rural Banks | 15.6 |

As can be seen from the table, commercial banks provide the largest share of credit to agriculture and allied sectors in India. Cooperative banks and Regional Rural Banks play a smaller role, but they are still important providers of credit to farmers.