Which of the following grants/grant direct credit assistance to rural households?1. Regional Rural Banks2. National Bank for Agriculture and Rural Development3. Land Development BanksSelect the correct answer using the codes given below.
✓ Correct answer: c) 1 and 3 only
ExplanationRRBs and LDBs provide direct credit assistance, whereas NABARD only refinances other banks.Option 1 is correct : RRBs are government-sponsored banks that provide direct credit to small and marginal farmers, ar- tisans, laborers, and small entrepreneurs.They aim to devel- op the rural economy by offering banking and financial ser- vices to low-income groups in rural areas.Example: Prathama Bank, Andhra Pradesh Grameena Vikas Bank.Option 2 is incorrect : NABARD does not grant direct credit assistance to rural households.It acts as a refinancing in- Indian Economy 289 191
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