Economics • Indian EconomyEasy
What is the core mandate of the 'National Bank for Agriculture and Rural Development (NABARD)' regarding rural credit in India?
A. To act as the apex regulatory authority for formulating monetary policy interest rates in rural areas
B. To provide direct retail loans to rural households for housing and consumer durable purchases
C. To serve as an apex refinancing agency for financing agriculture, small-scale industries, and rural development✓ Correct Answer
D. To manage foreign exchange reserves allocated specifically for agricultural commodity exports
💡 Solution & Explanation
NABARD operates as the apex refinancing institution established to support agricultural credit, rural development, and cottage industries across the nation. It does not formulate monetary policy rates or provide direct retail loans to individual households. Banking examinations frequently highlight the distinction between apex development banks and commercial retail lenders.
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