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Which problem is identified as chronic in the rural banking system?
AFalling foodgrain buffer stocks
BHigh agriculture loan defaults
CExcess deposit mobilisation
DSurplus rural branch staff
Answer & Solution
Correct answer: B. High agriculture loan defaults
1. Rapid banking expansion did raise rural output, income and employment.
2. But recovery has lagged badly.
3. **Agriculture loan default rates have been chronically high**.
4. Buffer stocks are in fact described as abundant, so falling stocks is the opposite of what is stated.
_Source: NCERT Class 11 Indian Economic Development, Ch 5 "Rural Development", section 5.3 CREDIT AND MARKETING IN RURA L_
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