Lesson eLearning

Which institution is primarily responsible for providing credit to small and marginal farmers in India?

medium MCQ 2 marks Class 10 · Geography · Agriculture
  1. National Bank for Agriculture & Rural Development (NABARD)
  2. Reserve Bank of India (RBI)
  3. State Bank of India (SBI)
  4. International Monetary Fund (IMF)
Answer
National Bank for Agriculture & Rural Development (NABARD)

The correct answer is National Bank for Agriculture & Rural Development (NABARD) — Select the option "National Bank for Agriculture & Rural Development (NABARD)"

Step-by-step solution

  1. Identify the role of RBI – it regulates banks but does not directly provide credit to farmers
  2. Recognise that NABARD is a development bank focused on agriculture and rural development
  3. Conclude that NABARD is the primary credit provider for small and marginal farmers
  4. Select the option "National Bank for Agriculture & Rural Development (NABARD)"
Common mistake: Choosing RBI instead of NABARD

Concept tested: Agricultural credit institutions

Published · How this solution was prepared and checked

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