UPSC Prelims 2020 · GS Paper I
Question 59: Economy and Social Development
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 the statements given above is/are correct ?
AnswerUPSC’s answer is (b).
District Central Cooperative Banks are the middle tier of the short-term cooperative credit structure: they raise funds and lend them on to Primary Agricultural Credit Societies, which is one of their most important functions. But in short-term agricultural credit, scheduled commercial banks supply a larger share than DCCBs, so statement 1 is wrong.
- 1. Scheduled commercial banks deliver a larger share of short-term agricultural credit.
- 2. DCCBs finance Primary Agricultural Credit Societies.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: Scheduled commercial banks deliver a larger share of short-term agricultural credit.
- Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.
What you needed to know: DCCBs finance Primary Agricultural Credit Societies.
Only (b) is left. This one needs every statement.
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: statement 1 is false because commercial banks deliver more short-term farm credit than DCCBs.
- (b) Right: statement 2 only.
- (c) Wrong: statement 1 is false.
- (d) Wrong: statement 2 is correct.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.