NCERT names four multi-agency institutions that make up the institutional structure of rural banking today. Three of them are given below. Pick the one that is NOT among those four.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → NABARD
Rural banking today has four institutions: commercial banks, regional rural banks, cooperatives and land development banks. NABARD is not one of them. It is the apex body set up in 1982 to coordinate all of them.
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas … Later, the National Bank for Agriculture and Rural Development (NABARD) was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system. The Green Revolution was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production-oriented lending. The institutional structure of rural banking today consists of a set of multi-agency institutions, namely, commercial banks, regional rural banks (RRBs), cooperatives and land development banks. They are expected to dispense adequate credit at cheaper rates. …” |