Which of the following grants/grant direct credit assistance to rural households?

Answer: (c) 1 and 3 only

Regional Rural Banks and Land Development Banks lend directly to farmers and rural households. NABARD is an apex refinance and development body. It funds the banks that do the lending and does not give credit directly to households.

• ✓ 1. RRBs are part of the multi-agency rural banking structure. They lend directly to rural borrowers such as small and marginal farmers, agricultural labourers and artisans.
• ✗ 2. NABARD was set up in 1982 as the apex body to coordinate rural financing institutions. It supports rural development by funding the banks that give the loans, so its assistance to households is indirect (refinance).
• ✓ 3. Land Development Banks are part of the multi-agency rural credit structure. They give long-term loans directly to farmers, for example for land improvement and farm investment.

Remember · NABARD is the apex refinancing and development bank for rural credit. RRBs, cooperatives, Land Development Banks and commercial banks are the ones that lend directly to rural households.

📘 Read it in NCERT: Class 11 Indian Economic Development, Ch 5 (practise this chapter) · Class 7 Exploring Society: India and Beyond (Part 2), Ch 8 (practise this chapter)

Question: UPSC Civil Services (Preliminary) 2013, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). · Report an error