JAIIB · PPB

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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Q

What is the definition of agriculture finance in the Indian banking context?

A

Agriculture finance refers to the provision of credit and financial services by banks and financial institutions to the agricultural sector, covering crop production, allied activities, and rural infrastructure development.

Q

What is the minimum percentage of Adjusted Net Bank Credit (ANBC) that banks must lend to agriculture?

A

18% of ANBC must be directed to agriculture sector.

Q

Which committee recommended the formation of NABARD as a dedicated institution for agricultural credit?

A

The Shivaraman Committee (Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development) recommended the establishment of NABARD in 1982.

Q

What is NABARD's full form and what year was it established?

A

National Bank for Agriculture and Rural Development, established in 1982.

Q

What is the primary apex institution for agricultural and rural development finance in India?

A

NABARD (National Bank for Agriculture and Rural Development), established in 1982, is the apex institution for agricultural credit, providing refinance, supervision, and development support to rural lending institutions.

Q

What is the purpose of the Agricultural Gold Loan scheme offered by banks?

A

Short-term credit against gold jewellery for agricultural purposes.

Q

What is a Kisan Credit Card (KCC) and what purpose does it serve?

A

Kisan Credit Card is a revolving credit facility provided to farmers to meet their short-term crop cultivation needs, post-harvest expenses, and allied agricultural activities through a single flexible credit limit.

Q

What does the term 'crop season' mean in the context of NPA norms for agricultural loans?

A

Period from sowing to harvesting of a particular crop.

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