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 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2020
Statement 2: The short-term cooperative credit structure is a three-tiered system: State Cooperative Banks (SCBs) at the state level, District Central Cooperative Banks (DCCBs) at the district level, and Primary Agricultural Credit Societies (PACS) at the village level. DCCBs act as a link between SCBs and PACS. A crucial function of DCCBs is indeed to channel funds received from SCBs (or refinanced by NABARD) to the PACS, which then provide credit directly to the farmers. This statement is correct.