Question

Which of the following statements is true or false?

a) NABARD takes up all the functions performed by RBI with regard to rural credit
b) NABARD provides credit directly to rural people

• A. both (a) and (b) are correct
• B. both (a) and (b) are false
• C. (a) is true, (b) is false
• D. (a) is false, (b) is true

Answer 1

The correct option is C (a) is true, (b) is false

NABARD stands for National Bank for Agriculture And Rural Development. The bank has been entrusted with matters concerning policy and planning related to agriculture and rural development. It replaced the Rural Planning and Credit Cell (RPCC) of RBI.

NBARD is an apex institution and hence doesn't directly directly finance farmers and other rural people.