Economics • Banking & FinanceMedium
How do District Central Cooperative Banks (DCCBs) bridge the operational gap between apex state cooperative banks and grassroots Primary Agricultural Credit Societies in Himachal Pradesh?
A. By acting as intermediary financing agencies that pool district savings and channel credit downward to PACS✓ Correct Answer
B. By functioning exclusively as stock exchange trading floors
C. By replacing commercial banks in foreign exchange arbitrage
D. By auditing central government tax revenues
💡 Solution & Explanation
District Central Cooperative Banks occupy the middle tier of the cooperative credit pyramid, mobilizing deposits at the district level and refinancing Primary Agricultural Credit Societies for rural lending. They connect apex state institutions with grassroots village societies, ensuring smooth liquidity flow. Tax auditing and stock exchange operations fall outside their cooperative mandate.
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