{"id":91768,"date":"2025-06-01T11:05:17","date_gmt":"2025-06-01T11:05:17","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91768"},"modified":"2025-06-01T11:05:17","modified_gmt":"2025-06-01T11:05:17","slug":"consider-the-following-statements-1-in-terms-of-short-term-credit","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/","title":{"rendered":"Consider the following statements :\n  1. In terms of short-term credit"},"content":{"rendered":"<p>Consider the following statements :<\/p>\n<ul>\n<li>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.<\/li>\n<li>2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatement 2 is correct, while Statement 1 is incorrect.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nStatement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect.<br \/>\nStatement 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.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe cooperative credit structure plays a vital role in providing financial services to rural areas, especially to small and marginal farmers. However, the cooperative sector has faced challenges related to governance, financial health, and competition from commercial banks and RRBs over the years. Recapitalization and reforms have been undertaken to strengthen the cooperative credit institutions.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements :\n  1. In terms of short-term credit\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/#more-91768\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements :<br \/>\n  1. In terms of short-term credit<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1288,1379,1120],"class_list":["post-91768","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1288","tag-agriculture-and-allied-sectors","tag-economic-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following statements :  1. In terms of short-term credit<\/title>\n<meta name=\"description\" content=\"Statement 2 is correct, while Statement 1 is incorrect. Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect. 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements :  1. In terms of short-term credit\" \/>\n<meta property=\"og:description\" content=\"Statement 2 is correct, while Statement 1 is incorrect. Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect. 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:05:17+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following statements :  1. In terms of short-term credit","description":"Statement 2 is correct, while Statement 1 is incorrect. Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect. 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements :  1. In terms of short-term credit","og_description":"Statement 2 is correct, while Statement 1 is incorrect. Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect. 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:05:17+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/","name":"Consider the following statements : 1. In terms of short-term credit","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:05:17+00:00","dateModified":"2025-06-01T11:05:17+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 2 is correct, while Statement 1 is incorrect. Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect. 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-in-terms-of-short-term-credit\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"Consider the following statements : 1. 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