Commerce Exam  >  Commerce Questions  >   Direction~ Read the following hypothetical c... Start Learning for Free
Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.
Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.
Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.
Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.
The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.
  • a)
    Regional Rural Banks
  • b)
    Small Industries Development Bank of India
  • c)
    Both (A) and (B)
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Direction~ Read the following hypothetical case study carefully and a...
Understanding the Rural Banking Structure in India
The rural banking structure in India plays a crucial role in providing financial support to farmers, primarily focusing on agricultural credit. Among the various institutions that facilitate this, Regional Rural Banks (RRBs) are particularly significant.
Regional Rural Banks (RRBs)
- RRBs were established to provide credit and develop the rural economy.
- They offer loans at relatively lower interest rates compared to private money lenders.
- Their primary aim is to cater to the financial needs of small and marginal farmers, agricultural laborers, and artisans.
Small Industries Development Bank of India (SIDBI)
- SIDBI primarily focuses on the growth and development of small-scale industries rather than direct agricultural credit.
- While it supports the overall rural economy, its main function does not directly align with agricultural lending.
Why Option A is Correct
- The question specifically asks for an institution expected to dispense credit at cheaper rates for agricultural purposes.
- Since RRBs are designed specifically for this purpose, they are the correct choice.
- SIDBI, although beneficial for rural development, does not primarily address agricultural credit needs.
Impact on Farmers
- By providing access to affordable credit, RRBs help farmers mitigate the risk of falling into debt from informal sources.
- This support is essential for ensuring sustainable agricultural practices and improving the livelihoods of rural communities.
In conclusion, the emphasis on Regional Rural Banks as the primary source of cheap credit for farmers highlights their pivotal role in the rural banking structure of India.
Free Test
Community Answer
Direction~ Read the following hypothetical case study carefully and a...
The institutional structure of rural banking today consists of a set of multi agency institutions, which are
(i) Commercial banks
(ii) Regional Rural Banks (HHBs)
(iii) Co-operatives and Land development banks
Recently, Self-Help Groups (henceforth SHGs) have also emerged.
Explore Courses for Commerce exam

Top Courses for Commerce

Question Description
Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction~ Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors likes crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.The rural banking structure in India consists of a set of multi-agency institutions _____________ is expected to dispense credit at cheaper rates for agricultural purposes to farmers.a)Regional Rural Banksb)Small Industries Development Bank of Indiac)Both (A) and (B)d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev