{"id":1986,"date":"2024-03-31T00:25:04","date_gmt":"2024-03-30T18:55:04","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1986"},"modified":"2024-04-03T07:01:00","modified_gmt":"2024-04-03T01:31:00","slug":"q-which-of-the-following-grants-grant-direct-credit-assistance-to-rural-households","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-which-of-the-following-grants-grant-direct-credit-assistance-to-rural-households","title":{"rendered":"Q.\u00a0Which of the following grants\/grant direct credit assistance to rural households?"},"content":{"rendered":"\n<ol class=\"wp-block-list\">\n<li>Regional Rural Banks<\/li>\n\n\n\n<li>National Bank for Agriculture and Rural Development<\/li>\n\n\n\n<li>Land Development Banks<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Select the correct answer using below.<\/p>\n\n\n\n<ul class=\"mcq wp-block-list\">\n<li>1 and 2 only<\/li>\n\n\n\n<li>1 and 3 only<\/li>\n\n\n\n<li>1 and 3 only<\/li>\n\n\n\n<li>1, 2 and 3<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (b) 1 and 3 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-660843a9a7dc2\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regional Rural Banks and Land development banks provide direct credit assistance to rural households<\/strong>&nbsp;in the form of loans etc.<\/li>\n\n\n\n<li><strong>NABARD do not provide direct assistance.<\/strong>&nbsp;It \u201crefinance\u201d the assistance by other institutions.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"regional-rural-banks-rrbs\">Regional Rural Banks (RRBs)<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRBs are&nbsp;<strong>government-owned scheduled commercial banks<\/strong>&nbsp;of India that operate at the&nbsp;<strong>regional level&nbsp;<\/strong>in different states of India.<\/li>\n\n\n\n<li>They serve the&nbsp;<strong>country\u2019s rural areas&nbsp;<\/strong>and provide them with basic banking and other financial-related services.<\/li>\n\n\n\n<li><strong>Origin:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>The&nbsp;Narasimham Committee<\/strong>&nbsp;on Rural Credit&nbsp;(1975) recommended the establishment of Regional Rural Banks (RRBs).<\/li>\n\n\n\n<li>The establishment of RRBs finds its route&nbsp;in&nbsp;the ordinance passed on&nbsp;26th&nbsp;September 1975 and the&nbsp;<strong>RRB Act 1976.&nbsp;<\/strong><\/li>\n\n\n\n<li>Prathama Grameen Bank was the first RRB bank and was established on&nbsp;2nd&nbsp;October 1975.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Functions:<\/strong>\n<ul class=\"wp-block-list\">\n<li>To provide basic&nbsp;<strong>banking facilities<\/strong>&nbsp;to&nbsp;<strong>rural and semi-urban areas.<\/strong><\/li>\n\n\n\n<li>To effect some governmental functions, such as the&nbsp;<strong>disbursal of wages under the&nbsp;MGNREGA policy.<\/strong><\/li>\n\n\n\n<li>To provide other bank-related facilities such as locker facility, internet banking,&nbsp;mobile banking, debit and credit cards, etc.<\/li>\n\n\n\n<li><strong>Grant credit facilities&nbsp;<\/strong>to people in rural areas, such as small farmers, artisans, small entrepreneurs, etc.<\/li>\n\n\n\n<li>To accept deposits from people.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regulation<\/strong>:&nbsp;Regional Rural Banks are&nbsp;<strong>regulated by&nbsp;RBI<\/strong>&nbsp;and&nbsp;<strong>supervised by the National Bank for Agriculture and Rural Development (NABARD).<\/strong><\/li>\n\n\n\n<li><strong>Ownership:&nbsp;<\/strong>RRBs are jointly owned by the Government of India (GOI), the Sponsor Bank and the concerned State Government with share proportions of 50%, 35% &amp; 15%, respectively.<\/li>\n\n\n\n<li><strong>Management<\/strong>:&nbsp;The&nbsp;Board of Directors manages these banks, overall affairs, which consists of one Chairman, three Directors as&nbsp;<strong>nominated by the Central Government<\/strong>, a maximum of two Directors as nominated by the concerned State Government, and a maximum of three Directors as&nbsp;<strong>nominated by the sponsor bank<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"national-bank-for-agriculture-and-rural-development-nabard\">National Bank for Agriculture and Rural Development (NABARD)<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NABARD is a financial institution that was&nbsp;<strong>set up by the Indian government to promote sustainable agriculture and rural development in the country<\/strong>.<\/li>\n\n\n\n<li>The functions of NABARD include the&nbsp;<strong>propagation of technological innovations, financial and non-financial solutions, and institutional development<\/strong>.<\/li>\n\n\n\n<li>The government of India established NABARD under the outlines of the National Bank for Agriculture and Rural Development Act 1981.<\/li>\n\n\n\n<li>It&nbsp;<strong>refinances all the financial institutions that finance the rural development projects<\/strong>&nbsp;for Agriculture and Rural Development or NABARD as it is the specific bank for looking after all agriculture and rural developments in the country.<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"land-development-bank\">Land development bank<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A land development bank, abbreviated LDB, is a special kind of development bank in India. It is a&nbsp;<strong>quasi-commercial type&nbsp;<\/strong>that&nbsp;<strong>provides services such as accepting deposits, making business loans, and offering basic investment products<\/strong>.<\/li>\n\n\n\n<li>The main objective of the LDB is<strong>&nbsp;to promote the development of land, agriculture and increase the agricultural production<\/strong>.<\/li>\n\n\n\n<li>The LDB provides&nbsp;<strong>long-term finance<\/strong>&nbsp;to members directly through its branches.<\/li>\n\n\n\n<li>The\u00a0<strong>sources of funds<\/strong>\u00a0of land development banks can include:\n<ul class=\"wp-block-list\">\n<li>Share capital from state or private sources<\/li>\n\n\n\n<li>Deposits from members or non-members<\/li>\n\n\n\n<li>Issue of debentures<\/li>\n\n\n\n<li>Accepting deposits<\/li>\n\n\n\n<li>Reimbursements of subsidies from the government<\/li>\n\n\n\n<li>Other funds<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Land development banks\u00a0<strong>provide long-term funds for various agriculture related projects<\/strong>\u00a0besides development of land and business. The borrowing capacity of a member is generally determined according to the number of shares he holds in the bank.\n<ul class=\"wp-block-list\">\n<li>The loans granted by land development bank is typically repayable within a&nbsp;<strong>20 to 30-year period<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Normally,&nbsp;<strong>loans are granted up to 50% of the value of the land or up to 30 times the revenue<\/strong>. Loans are granted only after a thorough verification of security title-deeds as well as the necessity for the loan.<\/li>\n\n\n\n<li>The&nbsp;<strong>rates of interest for LT loans are generally low and within the paying capacity of farmers. They are around 11 to 12%<\/strong>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Select the correct answer using below. Answer: (b) 1 and 3 only Notes: Regional Rural Banks (RRBs) National Bank for Agriculture and Rural Development (NABARD) Land development bank<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[60],"class_list":["post-1986","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-60"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":60,"label":"2013"}]},"featured_image_src_large":false,"author_info":{"display_name":"Ashish Singh","author_link":"https:\/\/lotusarise.com\/qna\/author\/sociology-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1986"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1986\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1986"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}