Question

Which of the following forms the part of short-term structures of Rural Cooperative Credit Institutions?

i.   Primary Agricultural Credit Societies

ii. State cooperative Banks

iii. Central Cooperative Banks

iv. State Cooperative Agriculture and Rural Development Banks

• A. i, ii and iii only
• B. ii, iii, iv only
• C. iii, iv only
• D. iv only

Answer 1

Answer:

A. i, ii and iii only

The Rural Cooperative Credit Structure in India is divided into two distinct arms based on loan duration: Short-Term and Long-Term.

1. Short-Term Structure (3-Tier Pyramidal System):

Designed primarily to meet working capital requirements (crop production, fertilizers, seeds):

• Apex Level (State Level): State Cooperative Banks (StCBs)

• Intermediate Level (District Level): District Central Cooperative Banks (DCCBs / CCBs)

• Grassroots Level (Village Level): Primary Agricultural Credit Societies (PACS)

2. Long-Term Structure:

Designed to meet investment credit requirements (land development, tractors, irrigation setups):

• State Level: State Cooperative Agriculture and Rural Development Banks (SCARDBs)

• District/Taluk Level: Primary Cooperative Agriculture and Rural Development Banks (PCARDBs)

Since State Cooperative Agriculture and Rural Development Banks (iv) fall under the Long-Term structure, only i, ii, and iii form part of the Short-Term structure.