Consider the following statements : 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks 2. One of the most

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Q: (IAS/2020)
Consider the following statements :
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,128,72,9,128,50,13

keywords: 

{'district central cooperative banks': [0, 1, 0, 1], 'primary agricultural credit societies': [0, 0, 0, 1], 'dccbs': [0, 0, 0, 1], 'regional rural banks': [0, 0, 2, 1], 'term credit delivery': [0, 0, 0, 1], 'scheduled commercial banks': [0, 0, 0, 2], 'agriculture sector': [0, 0, 0, 1], 'important functions': [0, 0, 0, 1], 'more credit': [0, 0, 0, 1], 'funds': [0, 1, 2, 9]}

The question is checking understanding of the role of District Central Cooperative Banks (DCCBs) in agricultural credit delivery. Statement 1 isn`t correct as DCCBs don`t provide more short-term credit than Scheduled Commercial Banks or Regional Rural Banks. These two types of banks generally have more resources and extensive networks, enabling them to provide more credit. Statement 2 is correct because the primary function of DCCBs is to provide funds to Primary Agricultural Credit Societies. They act as a link between state cooperative banks and these societies, supplying them with necessary capital for lending. Therefore, Option 2, which states that only statement 2 is correct, is the right answer.