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?

Question

YESPYQ · Accepted Answer

Correct answer: 2 only. Rural co-operatives include District Central Co-opera- tive Banks (DCCBs), State Co-operative Banks (StCBs), and Pri- mary Agricultural Credit Societies (PACS). Statement 1 is incorrect: Although the focus of rural cooper- ative lending is agriculture, the share in credit flow to the agri- culture of rural cooperatives is only 12.1%, as compared to 76% of Scheduled Commercial Banks (SCBs), and 11.9% of Regional Rural Banks. Statement 2 is correct: A District Co-operative Central Bank (DCCB) is a cooperative bank operating at the district level in various parts of India. It was established to provide banking to the rural hinterland for the agricultural sector with the branches primarily established in rural and semi-urban areas. DCCBs mo- bilise deposits from the public and provide credit to the public and PACS. SUPER HINT For S1, When comparing local vs. national institutions, always ask: “Who has deeper pockets, broader reach, and mandatory targets?” Answer = SCBs and RRBs, not DCCBs. Hence S1 likely false. 157

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