Q1. NABARD, which is set up to provide loans for rural development, is a
(a) Bank
(b) Board
(c) Block
(d) Department
(UPSC Prelims 1982)
Answer: (a)
Explanation: NABARD stands for National Bank for Agriculture and Rural Development. It is a development bank that provides credit and financial services for rural development, especially in agriculture and allied sectors.
Q2. Which of the following pairs is correct ?
(a) IDBI – Short-term financing
(b) NABARD – Industrial financing
(c) RBI – Long-term financing
(d) RRB – Dispensing rural credit
(UPSC Prelims 1987)
Answer: (d) RRB – Dispensing rural credit
Explanation: Regional Rural Banks (RRBs) were established to provide credit and other financial services to rural areas, especially to small and marginal farmers, agricultural laborers, and rural artisans. Their primary objective is dispensing rural credit, making option (d) the correct match. The other institutions listed have different mandates: IDBI focuses on industrial development, NABARD supports agricultural and rural development, and RBI is the central bank responsible for monetary policy and regulation, not long-term financing.