UPSC Prelims 2013 · GS Paper I
Question 100: Economy and Social Development
Which of the following grants/grant direct credit assistance to rural households?
- 1.Regional Rural Banks
- 2.National Bank for Agriculture and Rural Development
- 3.Land Development Banks
Select the correct answer using the codes given below.
AnswerUPSC’s answer is (c).
Regional Rural Banks and Land Development Banks (agricultural and rural development banks) lend directly to farmers and rural households. NABARD is the apex refinance institution: it lends to banks, cooperatives and RRBs, which then lend to rural households, and it does not give direct credit to individuals. So 1 and 3 only.
- 1. RRBs lend directly to rural households and farmers.
- 2. NABARD refinances institutions and does not lend directly to households.
- 3. Land Development Banks lend directly to farmers.
How you could have got this
- If you were sure statement 2 is not correct, (a), (b) and (d) go: each of them includes 2.
What you needed to know: NABARD refinances institutions and does not lend directly to households.
Only (c) is left. You didn’t need statements 1 or 3.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong. NABARD does not lend directly to rural households.
- (b) Wrong. NABARD is a refinance body, not a direct lender to households.
- (c) Correct. RRBs and Land Development Banks lend directly.
- (d) Wrong. NABARD does not give direct credit to households.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2013, General Studies Paper I, Series A. The paper on upsc.gov.in.