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 & Explanation
Correct answer: A. Commercial Banks
Commercial banks, including public sector banks, private sector banks, and foreign banks, play a dominant role in agricultural credit disbursement in India. Their extensive branch network and larger financial capacity allow them to cater to a significant portion of the credit needs of the agricultural sector compared to cooperative banks, regional rural banks, and microfinance institutions, although the latter also play important complementary roles.
Source: UPSC gs1 2011