Agriculture MCQ Quiz in తెలుగు - Objective Question with Answer for Agriculture - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

Last updated on Mar 18, 2025

పొందండి Agriculture సమాధానాలు మరియు వివరణాత్మక పరిష్కారాలతో బహుళ ఎంపిక ప్రశ్నలు (MCQ క్విజ్). వీటిని ఉచితంగా డౌన్‌లోడ్ చేసుకోండి Agriculture MCQ క్విజ్ Pdf మరియు బ్యాంకింగ్, SSC, రైల్వే, UPSC, స్టేట్ PSC వంటి మీ రాబోయే పరీక్షల కోసం సిద్ధం చేయండి.

Latest Agriculture MCQ Objective Questions

Top Agriculture MCQ Objective Questions

Agriculture Question 1:

Identify the correct statements about the Union Budget 2024-25's allocation for agriculture.

  1. ₹1.52 lakh crore has been allotted for agriculture and allied sectors.
  2. 109 high-yielding & climate-resilient crop varieties to be released for cultivation.
  3. Financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks.

  1. Only 1 
  2. Only 1 and 2
  3. Only 2 and 3
  4. Only 1 and 3
  5. 1, 2, and 3

Answer (Detailed Solution Below)

Option 5 : 1, 2, and 3

Agriculture Question 1 Detailed Solution

The correct answer is 1, 2, and 3.

In News

  • The Union Budget 2024-25 includes significant allocations to boost the agriculture sector.
Key Points
 
  • ₹1.52 lakh crore has been allotted for agriculture and allied sectors:
    • This statement is correct.
    • The Union Budget 2024-25 has indeed allocated ₹1.52 lakh crore for agriculture and allied sectors, aiming to boost agricultural productivity and support farmers.
    • This allocation includes funds for various schemes and programs designed to enhance agricultural infrastructure, promote sustainable farming practices, and improve the overall welfare of farmers.
  • 109 high-yielding & climate-resilient crop varieties to be released for cultivation:
    • This statement is correct.
    • The budget includes provisions for the release of 109 high-yielding and climate-resilient crop varieties to help farmers adapt to changing climate conditions and improve crop yields.
    • These crop varieties are expected to contribute to food security and sustainable agriculture by being more resilient to pests, diseases, and adverse weather conditions.
  • Financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks:
    • This statement is correct.
    • The Union Budget 2024-25 includes financial support for establishing Nucleus Breeding Centres for Shrimp Broodstocks, aiming to boost the aquaculture sector.
    • These centres will help improve the quality and productivity of shrimp farming, contributing to higher incomes for shrimp farmers and supporting the growth of the aquaculture industry.

Additional Information

  • Union Budget 2024-25:
    • The Union Budget 2024-25 focuses on several key areas to promote economic growth and development, with a significant emphasis on the agricultural sector.
    • Key initiatives include investment in agricultural infrastructure, promotion of sustainable farming practices, and support for technological advancements in agriculture.
  • High-yielding & Climate-resilient Crop Varieties:
    • The introduction of high-yielding and climate-resilient crop varieties is crucial for enhancing food security and ensuring sustainable agricultural practices in the face of climate change.
    • These crop varieties are developed through extensive research and breeding programs to withstand various environmental stresses and increase productivity.
  • Nucleus Breeding Centres for Shrimp Broodstocks:
    • Establishing Nucleus Breeding Centres is part of the government's efforts to support the aquaculture sector by improving the genetic quality and productivity of shrimp farming.
    • These centres will provide high-quality broodstocks, essential for producing healthy and high-yielding shrimp, thereby benefiting shrimp farmers and boosting exports.

Agriculture Question 2:

The approximate food subsidy for five years for distribution of food grains under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) will be to the tune of _______.

  1. Rs. 10.50 lakh crore
  2. Rs. 11.00 lakh crore
  3. Rs. 11.80 lakh crore
  4. Rs. 12.25 lakh crore
  5.  Rs. 13.50 lakh crore

Answer (Detailed Solution Below)

Option 3 : Rs. 11.80 lakh crore

Agriculture Question 2 Detailed Solution

The correct answer is  Rs. 11.80 lakh crore

Key Points

  • Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): This scheme was launched to provide free food grains to the poorest sections of society during the COVID-19 pandemic.
  • The main objective of PMGKAY is to ensure food security for vulnerable households by providing free food grains, thus mitigating the impact of the pandemic.
  • Food Subsidy: The approximate food subsidy for five years for the distribution of food grains under PMGKAY is estimated to be Rs. 11.80 lakh crore.
  • Distribution: The scheme ensures the distribution of 5 kg of food grains per person per month at no cost to the beneficiaries.
  • Implementation: PMGKAY is implemented by the Ministry of Consumer Affairs, Food and Public Distribution through the existing Public Distribution System (PDS).

Important Points

  • Rs. 10.50 lakh crore: This amount is less than the estimated subsidy for five years under PMGKAY.
  • Rs. 11.00 lakh crore: This amount is also less than the actual estimated subsidy.
  • Rs. 12.25 lakh crore: This amount is more than the estimated subsidy for PMGKAY.
  • Rs. 13.50 lakh crore: This amount is significantly higher than the estimated subsidy for PMGKAY.

Additional Information

  • PMGKAY Benefits: The scheme ensures that the poorest households have access to sufficient food during emergencies, reducing hunger and malnutrition.
  • Eligibility: The scheme covers all beneficiaries under the National Food Security Act (NFSA), including Antyodaya Anna Yojana (AAY) and Priority Households (PHH).
  • Impact: PMGKAY has played a critical role in providing food security to millions of people during the COVID-19 pandemic, ensuring that they have access to basic food supplies.
  • Monitoring: The distribution under PMGKAY is closely monitored to ensure that the benefits reach the intended beneficiaries and to prevent any leakages or corruption.

Agriculture Question 3:

Which of the following statements are true regarding the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)?

  1. PMGKAY aims to provide free food grains to 81.35 crore beneficiaries for a period of five years starting from 1st January, 2024.
  2. The scheme will enable beneficiaries to lift free food grains from any fair price shop in the country under the ONORC initiative.
  3. The economic cost of 35 kg rice for an Antyodaya family comes to Rs. 1371, while the cost of 35 kg wheat comes to Rs. 946, which is being borne by the Government of India.

  1. 1 and 2
  2. 2 and 3
  3. only 1
  4. only 2
  5. 1, 2 and 3

Answer (Detailed Solution Below)

Option 2 : 2 and 3

Agriculture Question 3 Detailed Solution

The correct answer is: 2 and 3

Key Points
 
  • PMGKAY aims to provide free food grains to 81.35 crore beneficiaries for a period of five years starting from 1st January, 2024:
    • This statement is incorrect.
    • PMGKAY aims to provide free food grains to beneficiaries during specific periods of crisis, such as the COVID-19 pandemic. However, the statement that it aims to provide food grains for five years starting from 1st January, 2024, is not accurate.
  • The scheme will enable beneficiaries to lift free food grains from any fair price shop in the country under the ONORC initiative:
    • This statement is correct.
    • The One Nation One Ration Card (ONORC) initiative allows beneficiaries to access their entitled food grains from any fair price shop across India, promoting flexibility and convenience.
  • The economic cost of 35 kg rice for an Antyodaya family comes to Rs. 1371, while the cost of 35 kg wheat comes to Rs. 946, which is being borne by the Government of India:
    • This statement is correct.
    • The Government of India bears the economic cost of providing food grains to Antyodaya families under the PMGKAY, ensuring that the beneficiaries receive the food grains free of cost.

Additional Information

  • Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY):
    • PMGKAY is a food security welfare scheme announced by the Government of India in 2020 during the COVID-19 pandemic to provide free food grains to the poor and needy.
    • The scheme aims to mitigate the hardships faced by people due to the economic impact of the pandemic by ensuring they have access to essential food supplies.
  • One Nation One Ration Card (ONORC) Initiative:
    • The ONORC initiative facilitates the portability of ration cards, allowing beneficiaries to access their food grain entitlements from any fair price shop across the country, thereby enhancing the reach and effectiveness of food distribution programs.

Agriculture Question 4:

Evaluate the following statements regarding the Kisan Credit Card (KCC) scheme, designed to provide financial support to farmers for their cultivation and other needs:

  1. The KCC scheme was introduced to provide adequate and timely credit to farmers for their cultivation and ancillary needs.
  2. The KCC scheme covers only short-term credit requirements of the farmers.
  3. The KCC scheme offers both term loans and working capital loans.
  4. The interest rate for loans under the KCC scheme is fixed at 2% per annum.
  5. The scheme also provides crop insurance coverage to protect farmers against crop loss

  1. Statements 1, 3, and 5 only
  2. Statements 1, 2, and 4 only
  3. Statements 2, 3, and 4 only
  4. Statements 1, 4, and 5 only
  5. Statements 3, 4, and 5 only

Answer (Detailed Solution Below)

Option 1 : Statements 1, 3, and 5 only

Agriculture Question 4 Detailed Solution

The correct answer is: Statements 1, 3, and 5 only

Key Points
 
  • The KCC scheme was introduced to provide adequate and timely credit to farmers for their cultivation and ancillary needs:
    • This statement is correct.
    • The Kisan Credit Card (KCC) scheme aims to provide farmers with timely and adequate credit support for their cultivation and ancillary activities.
  • The KCC scheme covers only short-term credit requirements of the farmers:
    • This statement is incorrect.
    • The KCC scheme covers both short-term and long-term credit needs of farmers, including working capital and term loans for various agricultural and allied activities.
  • The KCC scheme offers both term loans and working capital loans:
    • This statement is correct.
    • The scheme provides farmers with both term loans for investment purposes and working capital loans for meeting their short-term production needs.
  • The interest rate for loans under the KCC scheme is fixed at 2% per annum:
    • This statement is incorrect.
    • The interest rate for KCC loans is not fixed at 2% per annum. Interest rates may vary, and the government provides interest subvention to make loans affordable for farmers. Typically, the effective interest rate for farmers can be much lower due to subsidies and incentives.
  • The scheme also provides crop insurance coverage to protect farmers against crop loss:
    • This statement is correct.
    • The KCC scheme includes provisions for crop insurance, offering protection to farmers against crop losses due to natural calamities, pests, and diseases.

Additional Information

  • Kisan Credit Card (KCC) Scheme:
    • The KCC scheme was introduced by the Government of India in 1998 to ensure that farmers have access to adequate and timely credit at affordable rates.
    • The scheme aims to simplify the process of obtaining credit for farmers and reduce their dependence on informal sources of credit.
  • Key Features:
    • KCC offers a flexible and simple credit delivery mechanism for meeting the comprehensive credit requirements of farmers.
    • It covers various types of agricultural and related activities, including crop production, post-harvest expenses, consumption needs, and investment credit requirements.
    • The scheme provides coverage under the Pradhan Mantri Fasal Bima Yojana (PMFBY) to protect against crop loss.

Agriculture Question 5:

Which scheme focuses on providing long-term refinance support to cooperative banks and Regional Rural Banks (RRBs) for lending to agriculture and rural development activities, thereby facilitating sustainable and inclusive growth in rural areas?

  1. Pradhan Mantri Fasal Bima Yojana (PMFBY)
  2. Kisan Credit Card (KCC) Scheme
  3. NABARD’s Long Term Rural Credit Fund (LTRCF)
  4. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  5.  Cooperative banks and RRBs

Answer (Detailed Solution Below)

Option 3 : NABARD’s Long Term Rural Credit Fund (LTRCF)

Agriculture Question 5 Detailed Solution

The correct answer is  NABARD’s Long Term Rural Credit Fund (LTRCF)

Key Points

  • NABARD’s Long Term Rural Credit Fund (LTRCF): This scheme focuses on providing long-term refinance support to cooperative banks and Regional Rural Banks (RRBs) for lending to agriculture and rural development activities.
  • The main objective of LTRCF is to facilitate sustainable and inclusive growth in rural areas by ensuring the availability of long-term credit for various developmental activities.
  • Refinance Support: NABARD provides refinance to cooperative banks and RRBs to enable them to extend long-term loans for agriculture, allied activities, and rural infrastructure development.
  • Sustainable Growth: The scheme aims to promote sustainable agricultural practices, enhance rural livelihoods, and improve rural infrastructure, contributing to the overall development of rural areas.
  • Implementation: The fund is managed by NABARD, which ensures that the credit is utilized effectively for the intended purposes, supporting various rural development initiatives.

Important Points

  • Pradhan Mantri Fasal Bima Yojana (PMFBY): This scheme provides insurance coverage for crops but does not focus on providing long-term refinance support to cooperative banks and RRBs.
  • Kisan Credit Card (KCC) Scheme: This scheme provides short-term credit to farmers but does not focus on long-term refinance support for cooperative banks and RRBs.
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM): This scheme promotes self-employment and entrepreneurship among the rural poor but does not provide long-term refinance support.
  • Cooperative banks and RRBs: While these institutions are beneficiaries of the LTRCF, they are not a scheme themselves.

Additional Information

  • LTRCF Benefits: The fund helps in providing long-term credit support for agriculture and rural development, enabling sustainable and inclusive growth in rural areas.
  • Eligibility: Cooperative banks and RRBs that extend long-term loans for agriculture and rural development activities are eligible for refinance support under LTRCF.
  • Impact: LTRCF has significantly contributed to the development of rural infrastructure, promotion of sustainable agricultural practices, and enhancement of rural livelihoods.
  • Monitoring: NABARD monitors the utilization of the refinance support to ensure effective implementation and impact of the credit provided.

Agriculture Question 6:

Which of the following correctly describes the primary objective of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme launched by the Indian government to support farmers' financial needs?

  1. To provide direct income support of ₹6,000 per year to small and marginal farmers in three equal installments
  2. To provide subsidized seeds and fertilizers to farmers across the country
  3. To offer comprehensive insurance coverage for farmers' crops against all risks
  4. To develop and enhance irrigation infrastructure in rural areas
  5. To provide subsidized marketing facilities to farmers across the country

Answer (Detailed Solution Below)

Option 1 : To provide direct income support of ₹6,000 per year to small and marginal farmers in three equal installments

Agriculture Question 6 Detailed Solution

The correct answer is  To provide direct income support of ₹6,000 per year to small and marginal farmers in three equal installments

Key Points

  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): This scheme was launched by the Indian government to provide financial support to farmers, particularly small and marginal farmers.
  • The primary objective of PM-KISAN is to provide direct income support of ₹6,000 per year to small and marginal farmers in three equal installments of ₹2,000 each.
  • Eligibility: The scheme covers small and marginal farmer families who own cultivable land up to 2 hectares.
  • Implementation: The financial assistance is transferred directly to the bank accounts of eligible farmers through the Direct Benefit Transfer (DBT) system, ensuring transparency and efficiency.
  • Support for Agricultural Needs: The scheme aims to support farmers' financial needs for purchasing inputs, ensuring proper crop health, and meeting other agricultural requirements.

Important Points

  • To provide subsidized seeds and fertilizers to farmers across the country: This is not the primary objective of PM-KISAN. This objective is addressed by other schemes.To offer comprehensive insurance coverage for farmers' crops against all risks: This is the primary objective of the Pradhan Mantri Fasal Bima Yojana (PMFBY), not PM-KISAN.
  • To develop and enhance irrigation infrastructure in rural areas: This objective is addressed by schemes like the Pradhan Mantri Krishi Sinchai Yojana (PMKSY), not PM-KISAN.
  • To provide subsidized marketing facilities to farmers across the country: This is not the primary objective of PM-KISAN. This objective is addressed by other schemes.

Additional Information

  • PM-KISAN Benefits: The scheme helps in providing assured income support to small and marginal farmers, reducing their financial burden and promoting agricultural activities.
  • Impact: PM-KISAN has significantly contributed to enhancing the income stability of farmers, enabling them to invest in essential agricultural inputs and improve their productivity.
  • Monitoring: The scheme is monitored through a robust online platform to ensure timely and accurate disbursal of funds to eligible beneficiaries.

Agriculture Question 7:

Which of the following statements accurately describe the purpose and functioning of Regional Rural Banks (RRBs) in India, established to strengthen the flow of credit to the rural and agricultural sectors?

  1. RRBs were established to provide credit and banking facilities to rural and agricultural sectors.
  2. RRBs are jointly owned by the Central Government, State Government, and Sponsor Banks.
  3. RRBs primarily focus on serving urban and metropolitan areas.
  4. RRBs are regulated by the National Bank for Agriculture and Rural Development (NABARD).
  5. RRBs are restricted to providing only short-term loans for agricultural purposes.

  1. Statements 1, 2, and 4 only
  2. Statements 1, 3, and 5 only
  3. Statements 2, 3, and 4 only
  4. Statements 1, 4, and 5 only
  5. All are correct

Answer (Detailed Solution Below)

Option 1 : Statements 1, 2, and 4 only

Agriculture Question 7 Detailed Solution

The correct answer is: Statements 1, 2, and 4 only

Key Points
 
  • RRBs were established to provide credit and banking facilities to rural and agricultural sectors:
    • This statement is correct.
    • Regional Rural Banks (RRBs) were set up to enhance the availability of credit and banking services in rural areas, specifically targeting the agricultural sector and other rural industries.
  • RRBs are jointly owned by the Central Government, State Government, and Sponsor Banks:
    • This statement is correct.
    • The ownership of RRBs is divided among the Central Government (50%), State Government (15%), and Sponsor Banks (35%). This tripartite ownership model aims to ensure adequate support and governance for the RRBs.
  • RRBs primarily focus on serving urban and metropolitan areas:
    • This statement is incorrect.
    • RRBs are specifically designed to serve rural areas, not urban or metropolitan regions. Their primary mandate is to improve the flow of credit and banking services in rural and underserved areas.
  • RRBs are regulated by the National Bank for Agriculture and Rural Development (NABARD):
    • This statement is correct.
    • RRBs operate under the regulatory supervision of NABARD, which provides guidance and support to ensure their effective functioning in rural credit delivery.
  • RRBs are restricted to providing only short-term loans for agricultural purposes:
    • This statement is incorrect.
    • RRBs offer a variety of financial services, including both short-term and long-term loans, to cater to various needs of the rural and agricultural sectors. They are not restricted to providing only short-term loans.

Additional Information

  • Regional Rural Banks (RRBs):
    • Established under the Regional Rural Banks Act, 1976, RRBs aim to provide banking services to rural areas, focusing on small and marginal farmers, agricultural laborers, and rural artisans.
    • RRBs offer various financial products, including savings and current accounts, fixed deposits, and loans for agriculture, small enterprises, and rural development projects.
  • Role of NABARD:
    • NABARD plays a crucial role in regulating and supporting RRBs. It provides refinance facilities, monitors their performance, and ensures that they operate efficiently and in line with their mandate to support rural development.

Agriculture Question 8:

The primary objective of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) is to:

  1. Enhance the livelihoods of the urban poor by providing skill training and employment opportunities
  2. Provide affordable housing in rural areas through subsidies and financial assistance
  3. Promote self-employment, entrepreneurship, and organization of the rural poor into self-help groups (SHGs) and producer groups
  4. Support higher education for rural students by providing scholarships and grants
  5. Provide affordable education in rural areas through subsidies and financial assistance

Answer (Detailed Solution Below)

Option 3 : Promote self-employment, entrepreneurship, and organization of the rural poor into self-help groups (SHGs) and producer groups

Agriculture Question 8 Detailed Solution

The correct answer is  Promote self-employment, entrepreneurship, and organization of the rural poor into self-help groups (SHGs) and producer groups

Key Points

  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM): This scheme aims to reduce poverty by enabling the rural poor to access gainful self-employment and skilled wage employment opportunities.
  • The primary objective of DAY-NRLM is to promote self-employment, entrepreneurship, and the organization of the rural poor into self-help groups (SHGs) and producer groups.
  • Self-Help Groups (SHGs): The mission focuses on organizing the rural poor, particularly women, into SHGs to build their capacities and provide them with access to financial services.
  • Entrepreneurship Development: DAY-NRLM promotes entrepreneurship by providing skill training, capacity building, and access to credit and markets for rural poor individuals and groups.
  • Implementation: The scheme is implemented through a community-driven approach, with a focus on social inclusion, gender sensitivity, and convergence with other government programs.

Important Points

  • Enhance the livelihoods of the urban poor by providing skill training and employment opportunities: This is not the primary objective of DAY-NRLM, which focuses on rural livelihoods.
  • Provide affordable housing in rural areas through subsidies and financial assistance: This objective is addressed by schemes like the Pradhan Mantri Awas Yojana – Gramin (PMAY-G), not DAY-NRLM.
  • Support higher education for rural students by providing scholarships and grants: This is not the primary objective of DAY-NRLM.
  • Provide affordable education in rural areas through subsidies and financial assistance: This is not the primary objective of DAY-NRLM.

Additional Information

  • DAY-NRLM Benefits: The mission helps in empowering the rural poor by enhancing their livelihoods, increasing their incomes, and improving their overall quality of life.
  • Impact: DAY-NRLM has significantly contributed to reducing rural poverty, promoting social and economic inclusion, and fostering community-driven development.
  • Monitoring: The mission is monitored through various mechanisms, including community-based monitoring, regular reviews, and evaluations to ensure effective implementation and impact.

Agriculture Question 9:

Which of the following is NOT a feature of the Pradhan Mantri Fasal Bima Yojana (PMFBY), a flagship scheme of the Indian government aimed at providing insurance coverage and financial support to farmers in the event of crop failure?

  1. Provides insurance coverage for crops
  2. Supports post-harvest losses
  3. Covers localized risks such as hailstorms and landslides
  4. Provides minimum support price for crops
  5. All of the above

Answer (Detailed Solution Below)

Option 4 : Provides minimum support price for crops

Agriculture Question 9 Detailed Solution

The correct answer is  Provides minimum support price for crops

Key Points

  • Pradhan Mantri Fasal Bima Yojana (PMFBY): This flagship scheme of the Indian government aims to provide insurance coverage and financial support to farmers in the event of crop failure.
  • The main objective of PMFBY is to ensure farmers' financial stability by covering crop losses due to various risks, thus promoting sustainable agricultural practices.
  • Insurance Coverage for Crops: The scheme provides comprehensive insurance coverage for notified crops against non-preventable natural risks.
  • Post-Harvest Losses: PMFBY supports farmers by covering post-harvest losses due to cyclones and unseasonal rains for up to two weeks after harvesting.
  • Localized Risks: The scheme covers localized risks such as hailstorms, landslides, and other weather-related events that affect specific areas.
  • Minimum Support Price: PMFBY does not provide a minimum support price (MSP) for crops. MSP is a separate mechanism implemented by the government to ensure farmers receive a minimum price for their produce.

Important Points

  • Provides insurance coverage for crops: This is a key feature of PMFBY, which ensures farmers are protected against crop losses.
  • Supports post-harvest losses: PMFBY includes provisions for supporting post-harvest losses, making it a comprehensive insurance scheme.
  • Covers localized risks such as hailstorms and landslides: The scheme addresses specific localized risks, offering additional protection to farmers.
  • Provides minimum support price for crops: This is not a feature of PMFBY. The MSP is a different mechanism aimed at ensuring farmers receive a fair price for their produce.
  • All of the above: This option is incorrect because PMFBY does not provide a minimum support price for crops.

Additional Information

  • PMFBY Benefits: The scheme helps farmers by mitigating the risks associated with agricultural production, ensuring financial stability, and promoting investment in agriculture.
  • Eligibility: The scheme covers all farmers, including sharecroppers and tenant farmers, growing notified crops in notified areas.
  • Implementation: The scheme is implemented by various insurance companies in collaboration with state governments and is regulated by the Ministry of Agriculture and Farmers' Welfare.
  • Impact: PMFBY has significantly contributed to protecting farmers from financial losses due to crop failures, thereby enhancing their resilience and supporting agricultural sustainability.
  • Monitoring: The scheme is monitored through a robust online system to ensure transparency, timely settlement of claims, and effective implementation.

Agriculture Question 10:

Which organization in India is responsible for the regulation and supervision of cooperative banks and Regional Rural Banks (RRBs), ensuring the flow of rural credit for agricultural and rural development activities?

  1. National Bank for Agriculture and Rural Development (NABARD)
  2. Reserve Bank of India (RBI)
  3. Securities and Exchange Board of India (SEBI)
  4. Insurance Regulatory and Development Authority of India (IRDAI)
  5. National Housing Bank (NHB)

Answer (Detailed Solution Below)

Option 1 : National Bank for Agriculture and Rural Development (NABARD)

Agriculture Question 10 Detailed Solution

The correct answer is  National Bank for Agriculture and Rural Development (NABARD)

Key Points

  • National Bank for Agriculture and Rural Development (NABARD): NABARD is the apex development bank in India that is responsible for the regulation and supervision of cooperative banks and Regional Rural Banks (RRBs).
  • The main objective of NABARD is to promote sustainable and equitable agriculture and rural development through effective credit support, related services, institutional development, and other innovative initiatives.
  • Regulation and Supervision: NABARD ensures the flow of rural credit for agricultural and rural development activities by regulating and supervising cooperative banks and RRBs.
  • Rural Credit: NABARD plays a crucial role in enhancing rural credit delivery systems and providing financial support for various agricultural and rural development projects.
  • Implementation: The organization works in close coordination with the Reserve Bank of India (RBI), the government, and other stakeholders to implement its policies and programs effectively.

Important Points

  • Reserve Bank of India (RBI): While the RBI is the central bank of India and regulates the banking sector, the specific regulation and supervision of cooperative banks and RRBs are the responsibility of NABARD.
  • Securities and Exchange Board of India (SEBI): SEBI regulates the securities markets in India and does not focus on the regulation of cooperative banks and RRBs.
  • Insurance Regulatory and Development Authority of India (IRDAI): IRDAI is the regulator of the insurance sector in India, not the banking sector.
  • National Housing Bank (NHB): NHB is responsible for the regulation of housing finance companies and does not oversee cooperative banks and RRBs.

Additional Information

  • NABARD's Role: NABARD supports various initiatives to promote agricultural and rural development, including refinancing for rural infrastructure projects, capacity building, and institutional development.
  • Development Projects: NABARD provides financial assistance for irrigation, rural housing, microfinance, and other projects aimed at improving rural livelihoods and infrastructure.
  • Impact: NABARD's efforts have significantly contributed to the development of rural areas in India, enhancing agricultural productivity and improving the overall quality of life for rural communities.
  • Collaboration: NABARD collaborates with various national and international organizations to implement development programs and promote sustainable practices in agriculture and rural development.
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