Question
Which of the following grants / grant direct credit
assistance to rural households? 1. Regional Rural Banks 2. National Bank for Agriculture and Rural Development 3. Land Development Banks Select the correct answer using the codes given below.Solution
Land development bank started financing long term loan for more significant rural development activities like rural and cottage industries, rural artisans etc. The main purpose of RRB’s is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. NABARD doesnot give “direct” credit assistance. It provides credit Via intermediaries such as Microfinance companies, Cooperative society, RRB.
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