In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

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Q: 83 (IAS/2011)
In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,202,230,202,77,130,23

keywords: 

{'cooperative banks': [0, 0, 0, 1], 'regional rural banks': [0, 0, 2, 1], 'microfinance institutions': [0, 0, 0, 1], 'highest share': [0, 0, 2, 2], 'commercial banks': [0, 0, 1, 1], 'agriculture': [5, 1, 0, 6], 'disbursement': [0, 0, 0, 2], 'india': [8, 1, 7, 13], 'credit': [0, 2, 4, 6], 'allied activities': [0, 0, 0, 2]}

The question is about which type of banking institutions in India have the highest share in the disbursement of credit to agriculture and allied activities.

Option 1, Commercial Banks, is the correct answer. Commercial banks are the leading institutions providing agricultural credit in India. This is due their extensive network, enormous financial resources, and various loan products tailored for agricultural activities. They sponsor numerous schemes targeted specifically at the agricultural sector.

Option 2, Cooperative Banks, do play a significant role in agricultural financing especially in rural areas, but their share is not as high as commercial banks.

Option 3, Regional Rural Banks, also lend to the agricultural sector, especially in rural and semi-urban areas. However, their overall share in agricultural credit disbursement is also less compared to commercial banks.

Option 4, Microfinance Institutions, primarily aimed at fostering financial inclusion among the underprivileged and low-income groups, do contribute to agricultural credit but their contribution is also less in comparison to that of commercial banks.