Question

Which of the following provides the largest credit to agriculture and allied sectors?

  1. Cooperative Banks
  2. Regional Rural Banks
  3. Commercial Banks
  4. Cooperative and Regional Rural Banks jointly

Answer:

Option C: Commercial Banks

Detailed Solution:

The correct answer is “Commercial Banks”.

Commercial banks provide the largest share of credit to agriculture and allied activities in India, disbursing about 60% of credit. Cooperative banks provide around 30% of credit.