New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    Direction (18 to 21)-  Read the following information to answer the questions below: The role of primary (urban) co-operative banks (UCBs) in providing housing finance has been reviewed from time to time. These banks, with their vast network, occupy a very strategic position in the financial system and have an important role to play in providing credit to the housing sector. Further, housing finance to specified categories up to prescribed limits is treated as priority sector lending, and the need for UCBs providing credit to priority sector has come to be increasingly recognised consistent with the social objectives placed before the banking system. Therefore, with a view to enabling the UCBs to play a more positive role in providing finance for housing schemes, particularly to the weaker sections of the community, these banks are permitted to grant loans for housing schemes up to certain limits from their own resources subject to the guidelines detailed hereunder.

    Under which of the following schemes, the UCBs can provide finance directly to the slum dwellers? 

    A Housing and hostels for scheduled castes and scheduled tribes Correct Answer Incorrect Answer
    B Repairs, alterations, and additions to houses/flats by individuals Correct Answer Incorrect Answer
    C Construction/purchase of houses/flats by individuals Correct Answer Incorrect Answer
    D Schemes for housing projects or schemes for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) Correct Answer Incorrect Answer
    E Slum clearance schemes on the guarantee of the Government Correct Answer Incorrect Answer

    Solution

    UCBs can provide finance under slum clearance schemes directly to the slum dwellers on the guarantee of the Government or indirectly through Statutory Boards established for this purpose.

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