alleryStart learning →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: syllabus Indian Economic Development, Ch 5 "Rural Development", section 5.3 CREDIT AND MARKETING IN RURA L_
Keep practising Rural Development
Browse all Rural Development questions for IBPS Clerk, or explore more Banking Awareness topics.
Related questions
Tap every institution that is part of the rural banking structure.Place the milestones of Indian rural credit on the timeline.Under the Jan-Dhan Yojana, account holders can get an overdraft facility ofIn the critical appraisal of rural banking, which institution is the noted exception on deThe Green Revolution changed rural credit chiefly by shifting the portfolio towardsBy May 2019, roughly how many women were members of women's Self-Help Groups in India?Small credit provisions routed through Self-Help Groups are generally calledSelf-Help Groups build their lending pool mainly from