gs1medium

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

  1. A.Commercial Banks
  2. B.Cooperative Banks
  3. C.Regional Rural Banks
  4. 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

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