[OLD] AGRICULTURE FINANCE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
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What is the definition of 'agriculture' for the purpose of priority sector lending in India?
Agriculture for priority sector includes both farm and non-farm activities such as crop cultivation, allied activities like animal husbandry, fisheries, forestry, and ancillary services directly related to agriculture.
What is the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme?
Income support of Rs 6,000 per year to farmer families.
What is the difference between direct and indirect agriculture finance by banks?
Direct finance refers to loans given directly to farmers for cultivation and allied activities, while indirect finance includes loans to input dealers, agri-processing units, and institutions supporting agriculture.
What is the minimum and maximum loan amount covered under PM Fasal Bima Yojana?
No minimum; maximum is based on sum insured per crop.
What percentage of Adjusted Net Bank Credit (ANBC) must banks lend to agriculture as per RBI priority sector norms?
Scheduled Commercial Banks are required to lend at least 18% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher, to agriculture.
What is the role of Farmer Producer Organizations (FPOs) in agricultural credit?
FPOs aggregate small farmers to access institutional credit collectively.
What is a Kisan Credit Card (KCC) and its primary purpose?
Kisan Credit Card is a revolving credit facility provided to farmers to meet their short-term credit needs for crop cultivation, post-harvest expenses, and allied activities in a timely and hassle-free manner.
What is the concept of 'crop season' relevant to agricultural loan repayment?
Kharif (June-November) and Rabi (November-April) crop seasons.
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