Match List-I with List-II on rural credit:
| List-I | List-II |
|---|---|
| (A) Long gestation period between sowing and income | (I) Shifted rural credit towards production-oriented lending |
| (B) Requirement of some collateral | (II) Farmers borrow for seeds, fertilisers and family expenses |
| (C) Green Revolution | (III) Given to SHGs for self-employment |
| (D) Community Investment Support Fund | (IV) Kept a vast proportion of poor rural households out of the credit network |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
Each item is a cause or a feature of rural credit.
| List-I | List-II | Reason |
|---|---|---|
| (A) Long gestation period between sowing and income | (II) Farmers borrow for seeds, fertilisers and family expenses | Income comes late, so farmers borrow to meet costs in the meantime. |
| (B) Requirement of some collateral | (IV) Kept a vast proportion of poor rural households out of the credit network | The poor have no asset to pledge. |
| (C) Green Revolution | (I) Shifted rural credit towards production-oriented lending | Loans moved towards farm production. |
| (D) Community Investment Support Fund | (III) Given to SHGs for self-employment | It funds self-employment for income. |
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas … Credit: Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agriculture sectors. As the time of gestation period between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc. …” “… 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. Recently, Self-Help Groups (henceforth SHGs) have emerged to fill the gap in the formal credit system because the formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development. Since some kind of collateral is required, vast proportion of poor rural households were automatically out of the credit network. …” “… In recent years, about ₹ 10-15,000 per SHG and another ₹2.5 lakhs per SHG as a Community Investment Support Fund (CISF) are provided as part of renovating fund to take up self employement for income generation. …” |