According to the Union Budget 2020-2021, the bank credit growth as of January 1, 2021, stood at _________ %

6.7

The correct answer is Option (2) - 6.7

The bank credit growth mentioned in the Union Budget refers to the year-on-year growth rate of credit extended by banks to various sectors of the economy. This growth rate indicates the expansion or contraction of lending activities by banks and reflects the overall health and dynamism of the banking sector.

In the case of the Union Budget 2020-2021, it was stated that the bank credit growth as of January 1, 2021, stood at 6.7%. This means that compared to the credit extended by banks in January 2020, there was a 6.7% increase in the amount of credit extended by banks in January 2021.

A positive bank credit growth rate is generally considered favorable as it signifies increased lending activities by banks, which can stimulate economic growth by providing funds for investments, consumption, and business expansion. However, the optimal level of credit growth depends on various factors such as the overall economic conditions, inflationary pressures, and the quality of credit portfolios maintained by banks.

Therefore, the 6.7% bank credit growth mentioned in the Union Budget 2020-2021 indicates a moderate but positive expansion in lending activities by banks, contributing to the overall economic activity and development.