Question

Agricultural Credit Review Committee-1989, suggested the minimum criterion of viability for Primary Agricultural Credit Societies. Which among the following is not a criterion suggested by the committee?

• A. Have a full-time paid secretary
• B. Set up a regular office in a building owned by the society
• C. Contribute to statutory and other reserves on the scales considered necessary
• D. Pay a reasonable amount of dividend

Answer 1

Answer:

B. Set up a regular office in a building owned by the society

The Agricultural Credit Review Committee of 1989 did not suggest that a government nominee be on the committee of a Primary Agricultural Credit Society (PACS). 

The committee did suggest other criteria for the viability of PACS, including:

• Measuring the economic viability of the scheme using the benefit-cost ratio, internal rate of return, and net present worth

• Disbursing finance in a phased manner, not all at once 

The committee was chaired by Prof. A.M. Khusro and was also known as the Agricultural Review Committee. Its functions included: Examining problems with agricultural and rural credits, Measuring structural and operational deficiencies, and Recommending major systematic improvements.