Economics • Banking & FinanceMedium
How do District Central Cooperative Banks (DCCBs) function within the rural credit delivery mechanism of Uttarakhand?
A. They function directly under the central bank to formulate monetary policy interest rates
B. They operate at the intermediate level between the apex state cooperative bank and primary agricultural credit societies to provide short-term and medium-term agricultural loans✓ Correct Answer
C. They operate exclusively as foreign exchange brokers for international tourists
D. They act as stock market clearing corporations for corporate bonds
💡 Solution & Explanation
District Central Cooperative Banks form the middle tier of the short-term cooperative credit structure in Uttarakhand, channeling funds from the Uttarakhand State Cooperative Bank down to Primary Agricultural Credit Societies at the village level. They cater primarily to farming communities and rural artisans. State cooperative laws govern their registration and audit.
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