UPSC Prelims 2020 · Question 89 of 100
UPSC Prelims 2020 question on Dccb Cooperative Credit
- ExamUPSC CSE
- Year2020
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeStatement
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 Agriculture Credit Societies.
Which of the statements given above is/are correct?
Show answer
Answer: B. 2 only
Verdict
Correct statement: 2 only → Option (b).
Statement by statement
Statement 1 – INCORRECT: District Central Co-operative Banks (DCCBs) are a type of rural co-operatives, along with State Co-operative Banks (StCBs) and Primary Agricultural Credit Societies (PACS). Although the focus of rural cooperative lending is agriculture, the share in credit flow to agriculture of rural cooperatives is only 12.1%, as compared to 76% of Scheduled Commercial Banks (SCBs), and 11.9% of Regional Rural Banks. Hence DCCBs do NOT deliver more credit than Scheduled Commercial Banks. Hence statement 1 is incorrect.
Statement 2 – CORRECT: DCCBs mobilise deposits from the public and provide credit to the public and PACS. One of the most important functions of DCCBs is to provide funds to the Primary Agriculture Credit Societies. Hence statement 2 is correct.