CAIIB · RB

ISSUES CONCERNING RURAL AREAS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.

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Q

What is the primary definition of a rural area in India according to the Census of India?

A

A rural area is defined as any area that is NOT a statutory town (municipality, cantonment board, etc.) and has a population density of less than 400 persons per sq. km, with at least 75% of the male working population engaged in agriculture.

Q

What is the major challenge of small and marginal landholdings in rural India?

A

They reduce economies of scale and lower farm productivity.

Q

What is disguised unemployment in the context of rural India?

A

Disguised unemployment refers to a situation where more workers are employed in agricultural activities than are actually required, meaning their marginal productivity is zero or near-zero, giving the appearance of employment without real productive contribution.

Q

What is the primary cause of low crop yields in many rural areas of India?

A

Poor soil health, inadequate irrigation, and limited use of inputs.

Q

What does the term 'agrarian distress' broadly refer to in rural India?

A

Agrarian distress refers to the economic hardship faced by farmers due to factors like crop failure, indebtedness, price crashes, input cost escalation, and inadequate access to institutional credit, often leading to farmer suicides and rural poverty.

Q

What is the significance of watershed development programmes in rural India?

A

They conserve water and improve land productivity for farmers.

Q

Which government committee recommended doubling farmers' income by 2022 in India?

A

The Ashok Dalwai Committee (Inter-Ministerial Committee for Doubling Farmers' Income) was constituted by the Government of India to recommend strategies for doubling the real income of farmers by 2022.

Q

What is the purpose of the Pradhan Mantri Gram Sadak Yojana (PMGSY)?

A

To provide all-weather road connectivity to unconnected rural villages.

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