In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.
Assertion (A)- Lesser attention has been given by rural banking to the small and marginal farmers.
Reason (R)- The benefits of rural banking is mostly enjoyed by the rich farmers.
Answer & explanation
Correct answer: option 1
The correct answer is option 1: Both (A) and (R) are true and (R) is the correct explanation.
Explanation:
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Assertion (A): It is true that rural banking has historically given less attention to small and marginal farmers compared to larger or more affluent farmers.
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Reason (R): The reason given is also true in the sense that benefits from rural banking are often skewed towards wealthier or larger farmers who have more assets and creditworthiness.
Does (R) explains (A)?
Yes. The reason the small and marginal farmers receive less attention is precisely because the banking system's benefits are disproportionately skewed toward and "enjoyed by" the rich farmers. The concentration of credit among the wealthy effectively crowds out or deprioritizes the credit needs of the marginalized, making (R) the logical cause behind the situation described in (A).