Indian Rural Credit

Q.

Critically evaluate the role of the rural banking system in the process of rural development in India.

Q.

What prevents the poor from getting bank loans?

1. Complexity of procedure

2. Absence of collateral

3. High rates of interest

4. None of these

Q.

What are the reasons why the banks might not be willing to lend to certain borrowers?

Q.

Explain the role of micro-credit in meeting credit requirements of the poor.

Q.

Following are the institutional sources of agricultural credit except

1. Regional banks

2. Commercial banks

3. NABARD

4. Money lenders

Q.

Explain how kisan credit card caters to the credit needs of rural population?

Q.

What are some examples of an unorganised system of rural credit?

Q.

Explain different sources of credit in rural areas.

Q.

In a SHG, most of the decisions regarding savings and loan activities are taken by:

1. bank

2. group members

3. non-government organisation

4. government

Q. Match the following types of banks to their functions.

1. Long-term Loans
2. Self-owned Banks
3. Small/landless farmers
4. Regulatory Body

Q.

Define the following terms

(a) Disinvestment

(b) Devaluation

(c ) Outsourcing

OR

(a) IMF (b) WTO (c ) IBRD

Q.

Discuss the institutional source of credit which is regarded as the Apex Bank?

Q. is/are not an institutional source of rural credit.

1. Micro-credit Banks
2. Moneylenders
3. Commercial Banks
4. Regional Banks

Q. Banks hesitate to lend to farmers because of .

1. complex procedures
2. high interest rate
3. fear of defaults
4. high volumes

Q. The aim of nationalisation of banks was to .

1. attract FDI
2. diversify credit
3. reduce RBI's power
4. establish SBI

Q. The NABARD (National Bank of Agricultural and Rural Development) is __________.

1. an apex body to looking into the credit needs of the rural sector
2. the only body looking after all the credit needs of farmers
3. the main source of finance for the regional rural banks
4. all of the above

Q.

What are some examples of an organised system of rural credit?

Q.

Microcredit programme refers to

1. Credit provision made by small farmers

2. Credit provision made by large farmers

3. None

4. Credit provisions made by self help group to its members

Q.

Regional Rural Banks are opened up in areas :

1. Facing financial problem

2. No. of banks are less than required

3. With no banking facility

4. Developing areas in terms of banking

Q. The term banking is defined in section _________.

1. Section 5 of Banking Regulation Act
2. Section 4
3. Section 7
4. None of these

Q.

Which scheme provides adequate and timely support from the banking system to the farmers for their cultivation needs in a flexible manner

1. KMC

2. KMM

3. KBC

4. KCC

Q.

SHG refers to:

1. Small Help Group

2. Self Help Group

3. Both (a) and (b)

4. None of these

Q. Which of the following acts as a regulator for Co-operative banks?

1. SIDBI
2. KVIC
3. SFC
4. NABARD

Q. The YH Malegam Committee, which submitted its report in 2011, was set up to report on further improvement of functioning of __________.

1. micro finance institutions
2. stock exchanges in India
3. cooperative banks
4. regional rural banks

Q. What is an important advantage of Mixed Banking?

1. Help in transfer of funds
2. Help in industrialisation
3. Help in foreign exchange transactions
4. Help in providing finance

Q. Which of the following nations is considered the originator of the concept of Micro-Finance?

1. India
2. Bangladesh
3. USA
4. South Africa

Q. Which is the apex institution at national level for agricultural credit?

1. RBI
2. Agricultural Bank
3. NABARD
4. None of the above

Q. a) Initially, 5 regional rural banks were set up in 1970.
b) Every regional rural banks is sponsored by a national bank.

1. both (a) and (b) are false
2. (a) is true, but (b) is false
3. (a) is false, but (b) is true
4. both (a) and (b) are correct

Q. Kisan Credit Card (KCC) Scheme was introduced in 1998-99 to improve the credit delivery to farmers.Which one of the following does not operate this scheme?

1. NABARD
2. Co-operative Banks
3. Regional Rural Banks
4. Scheduled Commercial Banks

Q. Answer in detail.
What are the primary functions of commercial banks?
or What are the fundamental functions of commercial banks?