Match List-I with List-II on NCERT’s appraisal of rural banking:List-…

Match List-I with List-II on NCERT’s appraisal of rural banking:

List-I	List-II
(A) Rapid expansion of the banking system	(I) Became events of the past
(B) Famines	(II) Chronically high
(C) Food security	(III) Positive effect on rural farm and non-farm output, income and employment
(D) Agriculture loan default rates	(IV) Reflected in abundant buffer stocks of grains

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

The appraisal of rural banking has two sides: the gains from the spread of banks, and the weakness of loan recovery.

List-I	List-II	Reason
(A) Rapid expansion of the banking system	(III) Positive effect on rural farm and non-farm output, income and employment	More banks meant more credit for farm and non-farm work.
(B) Famines	(I) Became events of the past	Famines became a thing of the past.
(C) Food security	(IV) Reflected in abundant buffer stocks of grains	Large grain stocks show food security.
(D) Agriculture loan default rates	(II) Chronically high	Many farm loans are not repaid. This is the weak side.

NCERT (2026-27): “Rural Banking — a Critical Appraisal: Rapid expansion of the banking system had a positive effect on rural farm and non-farm output, income and employment, especially after the green revolution — it helped farmers to avail services and credit facilities and a variety of loans for meeting their prodution needs. Famines became events of the past; we have now achieved food security which is reflected in the abundant buffer stocks of grains. However, all is not well with our banking system. With the possible exception of the commercial banks, other formal institutions have failed to develop a culture of deposit mobilisation — lending to worthwhile borrowers and effective loan recovery. Agriculture loan default rates have been chronically high. …”