Which among the following agencies disbursed maximum credit to the agricultural sector in India between 2006-07 and 2011-12?
[amp_mcq option1=”Cooperative banks” option2=”Regional rural banks” option3=”Commercial banks” option4=”Moneylenders” correct=”option3″]
This question was previously asked in
UPSC CAPF – 2013
– While Cooperative banks historically played a dominant role, their share declined over time, and Commercial Banks, including Public Sector Banks and Private Sector Banks, significantly expanded their lending to agriculture, especially after policy directives emphasizing priority sector lending.
– During the period between 2006-07 and 2011-12, data consistently showed that Commercial Banks were the largest providers of institutional credit to agriculture, followed by Cooperative Banks and then RRBs.
– Moneylenders are non-institutional sources of credit and, while still present, their share in the total credit flow (institutional + non-institutional) declined significantly with the expansion of the institutional credit network. The question likely refers to the major categories of lenders active in the formal financial system.