Question

What is the major source of funds for Land Development Banks (LDBs)?

• A. Issue of bonds and debentures.
• B. Assistance from commercial banks.
• C. Loans from RBI.
• D. All of the above.

Answer 1

The correct option is A Issue of bonds and debentures.

Issue of bonds and debentures is the major source of funds for Land Development Banks (LDBs).Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.