UPSC Agriculture – Chapter 12: Farm Credit, Crop Insurance and Income Support (21 MCQs)
UPSC Agriculture – Chapter 12: Farm Credit, Crop Insurance and Income Support (21 MCQs) – 21 questions, subject: Agriculture. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.
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Long-term loans to farmers for land development and wells are mainly given by:
Correct Answer: A [Land Development Banks (Agriculture and Rural Development Banks)]
Explanation:
Land Development Banks, now Agriculture and Rural Development Banks, lend long term against land mortgage for land development and wells.
NABARD was set up in 1982 on the recommendation of:
Correct Answer: C [CRAFICARD, chaired by B. Sivaraman]
Explanation:
The B. Sivaraman-chaired CRAFICARD recommended an apex bank; NABARD was set up on 12 July 1982 under the NABARD Act, 1981.
The remark "cooperation has failed, but cooperation must succeed" is associated with:
Correct Answer: A [the All India Rural Credit Survey Committee]
Explanation:
report of 1954, chaired by A. D. Gorwala.
The shareholding of the Centre, the sponsor bank and the State in a Regional Rural Bank is:
Correct Answer: D [50 : 35 : 15]
Explanation:
Under the RRB Act, 1976, the Centre holds 50, the sponsor bank 35 and the State 15 per cent of an RRB's capital.
Under priority-sector lending, the target for lending to agriculture by domestic scheduled commercial banks is:
Correct Answer: A [18 per cent of adjusted net bank credit]
Explanation:
Of the 40 per cent priority-sector target, 18 per cent of ANBC must go to agriculture.
The Kisan Credit Card scheme was introduced on the recommendation of:
Correct Answer: B [the R. V. Gupta Committee]
Explanation:
in 1998-99.
Under the interest subvention scheme, a farmer who repays a short-term crop loan on time pays an effective interest of:
Correct Answer: D [4 per cent]
Explanation:
7 per cent less the 3 per cent prompt repayment incentive.
Under PMFBY, the farmer's premium for rabi food and oilseed crops is:
Correct Answer: D [1.5 per cent]
Explanation:
PMFBY fixes the farmer's premium for rabi food and oilseed crops at 1.5 per cent of the sum insured.
The Restructured Weather Based Crop Insurance Scheme settles claims on the basis of:
Correct Answer: A [weather parameters such as rainfall and temperature]
Explanation:
RWBCIS pays claims when weather parameters such as rainfall, temperature, humidity or wind recorded at stations deviate from set triggers.
Consider the following statements:
1. PM-KISAN is a Central Sector Scheme fully funded by the Centre.
2. PM-KISAN pays ₹6,000 a year in three equal instalments.
3. PM-KISAN covers landless agricultural labourers.
Which of the statements given above is/are correct?
Correct Answer: B [1 and 2 only]
Explanation:
PM-KISAN is fully Centre-funded and pays ₹6,000 in three instalments, but covers only landholding farmer families.
Assertion (A): Farm loan waivers often give little relief to the poorest farmers.
Reason (R): Many small, marginal and tenant farmers borrow from informal lenders, whose loans are not covered by waivers.
Correct Answer: A [Both A and R are true, and R is the correct explanation of A]
Explanation:
Waivers cover only institutional loans, so small and tenant farmers who borrow informally gain little – R explains A.
Regional Rural Banks were first set up in 1975 on the recommendation of:
Correct Answer: D [the Narasimham Working Group]
Explanation:
The Narasimham Working Group (1975) recommended RRBs; the first were set up on 2 October 1975.
Since kharif 2020, enrolment under PMFBY is:
Correct Answer: D [voluntary for all farmers]
Explanation:
The 2020 revamp made PMFBY enrolment voluntary for all farmers, including loanees, from kharif 2020.
Pradhan Mantri Kisan Maandhan Yojana provides:
Correct Answer: A [a pension of ₹3,000 a month after 60 years of age]
Explanation:
a voluntary, contributory pension for small and marginal farmers who join at 18 to 40 years.
The base of the short-term cooperative credit structure, dealing directly with farmers, is the:
Correct Answer: B [Primary Agricultural Credit Society]
Explanation:
the village-level society.
Which of the following is a main weakness of weather-index-based crop insurance?
Correct Answer: B [Basis risk – the weather at the station may differ from that on the farm]
Explanation:
a farmer may suffer a loss that the station record does not show.
Arrange the following in chronological order:
1. Setting up of NABARD
2. Introduction of the Kisan Credit Card
3. First Regional Rural Banks
4. Launch of PMFBY
Select the correct answer using the code given below:
Correct Answer: C [3-1-2-4]
Explanation:
first RRBs 1975, NABARD 1982, KCC 1998-99, PMFBY 2016.
Under PMFBY, the balance of premium beyond the farmer's share in North-Eastern and Himalayan States is shared by the Centre and the State in the ratio:
Correct Answer: D [90 : 10]
Explanation:
The Centre bears 90 per cent of the balance premium in North-Eastern States (from kharif 2020) and Himalayan States (from kharif 2023).
The RBI Internal Working Group to Review Agricultural Credit (2019) was chaired by:
Correct Answer: C [M. K. Jain]
Explanation:
the then Deputy Governor of the RBI.
Regional Rural Banks are regulated by the RBI and supervised by:
Correct Answer: C [NABARD]
Explanation:
NABARD supervises RRBs and cooperative banks, while the RBI regulates them.
Which of the following grants/grant direct credit assistance to rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the code given below:
Correct Answer: C [1 and 3 only]
Explanation:
RRBs and Land Development Banks lend directly; NABARD refinances them.
➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U16 · Agriculture (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-agriculture
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