Economics • Banking & FinanceMedium
How do District Central Cooperative Banks operating within Chhattisgarh primarily fund their lending operations for seasonal agricultural activities?
A. By mobilizing local deposits and securing refinance credit from apex cooperative banks and National Bank for Agriculture and Rural Development✓ Correct Answer
B. By issuing long-term bonds directly in international capital markets denominated in foreign currencies
C. By borrowing unsecured short-term funds from foreign institutional investors on stock exchanges
D. By collecting direct corporate taxes from mining corporations operating in Korba and Durg
💡 Solution & Explanation
District Central Cooperative Banks rely heavily on deposit mobilization from rural and semi-urban communities combined with refinancing lines from state cooperative banks and National Bank for Agriculture and Rural Development to sustain short-term crop loans. They form the middle tier of the short-term cooperative credit structure. Strengthening these banks is crucial for timely disbursement of agricultural credit.
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