UPSC Prelims 2020 · Question 76 of 100
UPSC Prelims 2020 question on Kisan Credit Card
- ExamUPSC CSE
- Year2020
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicAgriculture Economy
- DifficultyMedium
- TypeStatement
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks.
3. Consumption requirements of farm households
4. Post-harvest expense
5. Construction of family house and setting up of village cold storage facility.
Select the correct answer using the code given below:
Show answer
Answer: B. 1, 3 and 4 only
Verdict
Correct statements: 1, 3 and 4 → Option (b).
Analysis
Kisan Credit Card Scheme (KCC) is a type of loan given to farmers. The scheme was introduced in 1998. It is not a credit card for farmers — it is like an overdraft scheme for farmers.
The KCC scheme covers the following purposes:
- Working capital for maintenance of farm assets and allied activities (Statement 1 – CORRECT)
- Consumption requirements of farm households (Statement 3 – CORRECT)
- Post-harvest expenses (Statement 4 – CORRECT)
- Maintenance/repair of farm equipment
- Short-term credit needs for crop cultivation
Statement by statement
Statement 2 – INCORRECT: Purchase of combine harvesters, tractors and mini trucks is NOT covered under short-term KCC credit. These are long-term capital investments, not short-term working capital needs.
Statement 5 – INCORRECT: Construction of family house and setting up of village cold storage facility is NOT a purpose of KCC short-term credit support.