Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
Explanation
Statement 1 is incorrect: In total agricultural credit delivery (including short-term crop loans), Scheduled Commercial Banks (SCBs) are the dominant lenders, accounting for roughly 60% to 75% of institutional disbursements, followed by Regional Rural Banks (RRBs) and Cooperative banks. DCCBs do not deliver more short-term credit than SCBs.
Statement 2 is correct: In the three-tier Short-Term Cooperative Credit Structure (State Cooperative Bank at state tier, DCCB at district tier, and PACS at village tier), a primary role of the District Central Cooperative Bank is to mobilize resources and provide refinance and credit funds directly to affiliated Primary Agricultural Credit Societies (PACS).
Hence, only statement 2 is correct — Option B.