Which of the following is not true regarding rural banking in India?

1. NABARD is an apex body to coordinate the activities of all institutions involved in the rural financing system set up in 1972.
2. With the possible exception of the commercial banks, other formal institutions have failed to develop a culture of deposit mobilisation.
3. Agriculture loan default rates have been chronically high.
4. The expansion and promotion of the rural banking sector has taken a backseat after reforms.

Only 1

The correct answer is option 4: Only 1

NABARD is an apex body to coordinate the activities of all institutions involved in the rural financing system set up in 1982 (not in 1972).

"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.

Thus, the expansion and promotion of the rural banking sector has taken a backseat after reforms. To improve the situation, In recent years, all the adults are encouraged to open bank accounts as a part of a scheme known as JanDhan Yojana."