Tag: credit and banking in rural areas

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Questions Related to credit and banking in rural areas

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

What does the letter 'M' denote in the term 'MFI' as used in financial sector?

  1. Mini

  2. Monetary

  3. Micro

  4. Mega
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Micro Finance Institution, also known as MFI  is an organization that offers financial services to low income populations especially in rural ares. These organisations are created for the upliftment of poor sectors of the economy.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

The NABARD (National Bank of Agricultural and Rural Development) is __________.

  1. an apex body to looking into the credit needs of the rural sector

  2. the only body looking after all the credit needs of farmers

  3. the main source of finance for the regional rural banks

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) was set up in 19821892 to function as an apex bank in the area of rural credit. This bank does not directly extend any loans to the rural people. It extends financial assistance to cooperatives and regional rural banks, who in turn make available loans to the farmers.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following operates at the district level?

  1. State Cooperative Bank

  2. Central Cooperative Bank

  3. Primary Agricultural Credit Society

  4. Reserve Bank of India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the cooperative credit structure, the Primary Agricultural Credit Society (PACS) is at the village level, the Central Cooperative Bank is at the district level, and the State Cooperative Bank is at the state level.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Land Development Banks form a part of the __________.

  1. Commercial Banks

  2. Industrial Development Bank of India

  3. Food Corporation of India

  4. Cooperative Credit Structure
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Land Development Banks are a specialized part of the cooperative credit structure in India, focusing on providing long-term credit for agricultural land development.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following combination is correct?

  1. NABARD- Industrial loans

  2. Regional Rural Banks - Agricultural finance

  3. RBI - Long term finance

  4. IDBI - Short term finance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development Financial Institution in India. The Bank has been entrusted with "matters concerning Policy Planning and Operations in the field of credit for Agriculture and other Economic activities in Rural areas in India"


The RBI was established with the aim of being a banker's bank and also the bank for the government. Its task was to promote the economic growth of the country through various frameworks and economic policies of the government.

The main objectives of IDBI are to serve as the apex institution for term finance for industry in India. Its objectives include Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs.

Hence only Regional Rural Bank provide agriculture finance.
So, B is the correct option.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

The implementation of which of the following programmes is/was based on the concept of Self Help Groups (SHGs)?

  1. National Rural Employment Guarantee Act

  2. Sampoorna Grameen Rozgar Yojna

  3. National Food for work Programme

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The National Food for Work Programme (NFWP) was designed to provide additional resources to rural areas, and it utilized the SHG concept for community-based implementation and monitoring.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following schemes is launched by the Government of India to provide banking services in 73,000 villages in India?

  1. ASHA

  2. Swabhiman

  3. Kutir Jyoti

  4. RAY
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Swabhiman scheme was launched by the Government of India in 2011 to provide banking services to unbanked villages with a population of over 2,000.