Role of NABARD
NABARD was set up as an apex body to:
- Provide direct loans to farmers
- Coordinate activities of all institutions involved in rural financing system — Correct Answer
- Regulate stock markets
- Control inflation in rural areas
Explanation:
Correct Answer Explanation
NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.
Key Points:
- NABARD oversees commercial banks, RRBs, cooperatives and land development banks in rural areas.
- It plays a key role in rural credit delivery mechanism.
- It supports and promotes agricultural and rural development activities.
Why Other Options Are Wrong
- A: NABARD coordinates institutions, not directly lends to farmers.
- C: Stock market regulation is done by SEBI, not NABARD.
- D: Inflation control is the function of RBI.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
