QUESTION

Medium

Economy

Prelims 2011

In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

Select an option to attempt

Explanation

In India, the sector of agriculture and its allied activities receive the highest amount of credit from Commercial Banks. This is due to the mandate by the Reserve Bank of India (RBI) for Priority Sector Lending (PSL), which includes domestic and foreign commercial banks.

Commercial banks disburse around 60% of the credit to agriculture and allied activities, which is the highest share compared to Cooperative Banks, Regional Rural Banks, and Microfinance Institutions.

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