UPSC Prelims 1999 · General Studies

Question 50: Economy and Social Development

The main sources of credit to the farmers include

athe Primary Agricultural Cooperative Societies, commercial banks, RRBs and private moneylenders

bthe NABARD, RBI, commercial banks and private moneylenders

cthe District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY

dthe Large-scale Multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks

AnswerThe answer is (a).

Indian farmers borrow from two kinds of sources. Institutional: primary agricultural cooperative societies, commercial banks and regional rural banks. Non-institutional: private moneylenders, who still supply a large share. Option (a) lists exactly these. The others mix in bodies that do not lend directly to farmers (NABARD and the RBI refinance and regulate) or schemes that are not credit agencies (IRDP, JRY). Remember: PACS, banks and RRBs, plus moneylenders.

Why each option is right or wrong

(a) Right. PACS, commercial banks, RRBs and private moneylenders are the main sources.
(b) Wrong. NABARD and the RBI refinance and regulate; they do not lend directly to farmers.
(c) Wrong. IRDP and JRY are anti-poverty programmes, not credit sources.
(d) Wrong. A tribal-development programme and IFFCO, a fertiliser cooperative, are not main credit sources.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1999, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.