Question

What is the meaning of- 1) these banks provide 72% of total institutional credit. 2) in 1982, NABARD was established to institutionalise credit facilities to farmers .

Answer 1

Dear student,

1) After the failure of cooperative credit societies, the commercial banks has entered in the rural sector to meet the rural credit requirements. Presently, commercial banks provide 72% of total institutional credit in rural areas.

2) In 1982, NABARD was set up to instutionalise credit facility to farmers. It perform the following functions:
i) It advance credit for rural development activities.
ii) It improve credit delivery system.
iii) It coordinates rural financing activities of all credit institutions.
iv) It regulates the activities of rural banking institutions.

Regards