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Consider the following statements.
1. Regional Rural Banks (RRBs) were formed by an act of parliament, with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.
2. As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.
3. Co-operative Banks contributed the major share in agricultural and allied credit in India.
Which of the above statements is/are incorrect?
  • a)
    1 and 2 only
  • b)
    2 only
  • c)
    1 and 3 only
  • d)
    2 and 3 only
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements.1. Regional Rural Banks (RRBs) were...
Regional Rural Banks (RRBs) were formed under the RRB Act, 1976 with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.
As per RBI guidelines, the RRBs have to provide 75 per cent of their total credit under priority sector lending.
RRBs primarily cater to the credit and banking requirements of the agriculture sector and rural areas, focusing on small and marginal farmers, micro and small enterprises, rural artisans and weaker sections of the society. 
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Most Upvoted Answer
Consider the following statements.1. Regional Rural Banks (RRBs) were...
Incorrect Statements Explanation:

Statement 2: As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.
- This statement is incorrect because the correct requirement for RRBs is to provide 75 per cent of their total credit under priority sector lending, not 90 per cent.

Statement 3: Co-operative Banks contributed the major share in agricultural and allied credit in India.
- This statement is incorrect because Regional Rural Banks (RRBs) actually play a significant role in providing credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas. RRBs were specifically established with this objective by an act of parliament.
Therefore, the correct answer is option 'D' as both statements 2 and 3 are incorrect.
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Consider the following statements.1. Regional Rural Banks (RRBs) were formed by an act of parliament, with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.2. As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.3. Co-operative Banks contributed the major share in agricultural and allied credit in India.Which of the above statements is/are incorrect?a) 1 and 2 onlyb) 2 onlyc) 1 and 3 onlyd) 2 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?
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Consider the following statements.1. Regional Rural Banks (RRBs) were formed by an act of parliament, with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.2. As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.3. Co-operative Banks contributed the major share in agricultural and allied credit in India.Which of the above statements is/are incorrect?a) 1 and 2 onlyb) 2 onlyc) 1 and 3 onlyd) 2 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. Regional Rural Banks (RRBs) were formed by an act of parliament, with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.2. As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.3. Co-operative Banks contributed the major share in agricultural and allied credit in India.Which of the above statements is/are incorrect?a) 1 and 2 onlyb) 2 onlyc) 1 and 3 onlyd) 2 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. Regional Rural Banks (RRBs) were formed by an act of parliament, with an objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.2. As per RBI guidelines, the RRBs have to provide 90 per cent of their total credit under priority sector lending.3. Co-operative Banks contributed the major share in agricultural and allied credit in India.Which of the above statements is/are incorrect?a) 1 and 2 onlyb) 2 onlyc) 1 and 3 onlyd) 2 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?.
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