Question

In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities ?

• A. Commercial Banks
• B. Cooperative Banks
• C. Regional Rural Banks
• D. Microfinance Institutions

Answer 1

Answer: (A)

Commercial Banks

1:The Indian agriculture sector receives highest amount of credit from commercial banks. Initially it was limited but after 2007 this limit was increased and now the commercial bank's share in credit given agriculture is around 60%
2:commercial banks have the highest share in the disbursement of credit to agriculture and allied activities. The commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.