alleryStart learning →In the critical appraisal of rural banking, which institution is the noted exception on deposit mobilisation?
ALand development banks
BCooperative societies
CRegional rural banks
DCommercial banks
Answer & Solution
Correct answer: D. Commercial banks
1. Deposit mobilisation, sound lending and loan recovery are the three tests.
2. Most formal rural institutions failed to build that culture.
3. **Commercial banks** are named as the possible exception.
4. Agriculture loan default rates have meanwhile been chronically high across the system.
_Source: syllabus Indian Economic Development, Ch 5 "Rural Development", section 5.3 CREDIT AND MARKETING IN RURA L_
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