Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q36 (IAS/2020) Economy › Agriculture & Rural Economy › Agricultural credit system Official Key

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below :

Result
Your answer: —  Âˇ  Correct: B
Explanation

The correct answer is Option 2 (1, 3 and 4 only). The Kisan Credit Card (KCC) scheme is primarily designed to meet the short-term credit requirements of farmers for cultivation and allied activities.

The following points justify why Option 2 is correct:

  • Statement 1, 3, and 4: These are core objectives of KCC. It provides liquidity for working capital (maintenance of farm assets), consumption requirements of the household, and post-harvest expenses.
  • Statement 2: Purchase of heavy machinery like tractors or mini trucks requires long-term investment credit, which falls outside the primary "short-term credit support" scope mentioned in the question context.
  • Statement 5: Construction of houses or cold storage facilities are capital-intensive, long-term investments. KCC focuses on operational costs rather than major infrastructure development.

Thus, by eliminating long-term capital investments (2 and 5), we arrive at the correct combination of short-term needs.

How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
80%
got it right
PROVENANCE & STUDY PATTERN
Guest preview
Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? 1. Working capit…
At a glance
Origin: Books + Current Affairs Fairness: Moderate fairness Books / CA: 6/10 ¡ 4/10
You're seeing a guest preview. The Verdict and first statement analysis are open. Login with Google to unlock all tabs.
Statement 1
Under the Kisan Credit Card scheme, is short-term credit support provided to farmers for working capital for maintenance of farm assets?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > iii) Kisan Credit Cards (KCC): > p. 75
Presence: 5/5
“• Post-harvest expenses• Produce Marketing loan• Consumption requirements of farmer household• Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.• Investment credit requirement for agriculture and allied activities like pump sets, sprayers, dairy animals etc. The following people are eligible for this scheme: • All Farmers Individuals / Joint borrowers who are owner cultivators• Tenant Farmers, Oral Lessees & Share Croppers• Self Help Groups or Joint Liability Groups of Farmers To ensure that the farmers pay a minimal interest rate to the banks, the Government of India has introduced the Modified Interest Subvention Scheme (ISS), to provide shortterm credit to farmers at subsidised interest rates.”
Why this source?
  • Explicitly lists 'Working capital for maintenance of farm assets' as a permitted use of KCC.
  • Also groups working capital with allied activities and investment credit, linking it to routine farm requirements.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > iii) Kisan Credit Cards (KCC): > p. 74
Presence: 4/5
“Under the scheme, the limits are fixed on the basis of operational land holding, cropping pattern and scales of finance. The interest rate is as per the RBI guidelines. Kisan Credit Card Scheme aims at providing adequate and timely credit support from the formal banking system under a single window to the farmers for their following needs: To meet the short-term credit requirements for cultivation of crops”
Why this source?
  • Defines the KCC aim as providing adequate and timely short-term credit support to farmers.
  • Specifies short-term credit requirements for cultivation of crops, aligning with working-capital needs.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Government Initiatives so far to Promote Agricultural Credit > p. 322
Presence: 4/5
“9.36 Indian Economy • Kisan Credit Card (KCC): It was designed by NABARD and introduced in 1998 to facilitate short-term formal credit to farmers. Each farmer is provided with KCC and passbook to receive cash credit facilities. • KCC is offered by a large number of public sector banks, private banks, cooperative banks and RRBs in India. • Eligible beneficiaries include individual farmer who is an owner-cultivator, tenant, ۰ sharecropper or a group of any of them.”
Why this source?
  • Describes KCC as designed to facilitate short-term formal credit to farmers.
  • Identifies institutional intent to provide short-term credit through the scheme.
Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

How to study

This tab shows concrete study steps: what to underline in books, how to map current affairs, and how to prepare for similar questions.

Login with Google to unlock study guidance.

Micro-concepts

Discover the small, exam-centric ideas hidden in this question and where they appear in your books and notes.

Login with Google to unlock micro-concepts.

The Vault

Access hidden traps, elimination shortcuts, and Mains connections that give you an edge on every question.

Login with Google to unlock The Vault.

✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS ¡ 2004 ¡ Q76 Relevance score: 1.88

Consider the following statements: 1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India. 2. The Kisan Credit Card holders are provided personal accident insurance of Rs 50,000 for accidental death and Rs 25,000 for permanent disability. Which of the statements given above is/ are correct?

IAS ¡ 1999 ¡ Q50 Relevance score: -1.35

The farmers are provided credit from a number of sources for their short and long-term needs. The main sources of credit to the farmers include

IAS ¡ 2016 ¡ Q21 Relevance score: -3.32

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements : 1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. Which of the statements given above is/are correct?