JAIIB · PPB · Chapter 15

Agricultural 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

Under the priority sector framework, into which three sub-categories is agriculture lending grouped?

A

Agriculture lending is grouped into Farm Credit, Agriculture Infrastructure, and Ancillary Activities.

Q

What are the three sub-categories under which agriculture is classified in the priority sector lending framework?

A

Farm credit, Agriculture infrastructure, and Ancillary activities

Q

What is the primary purpose of agricultural finance as extended by banks in India?

A

Agricultural finance aims to provide timely and adequate credit to farmers to meet their production, investment, and allied activity needs.

Q

What is the collateral-free ceiling for agricultural loans effective from 1 January 2025?

A

₹2 lakh per borrower

Q

Which type of agricultural credit is used to meet short-term seasonal requirements such as purchase of seeds, fertilisers, and pesticides?

A

Short-term or crop loans (also called Kisan Credit Card loans) are used to meet seasonal agricultural operations and allied activities.

Q

Under which sub-category of agriculture do loans to individual farmers and SHGs/JLGs engaged in dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture fall?

A

Farm credit

Q

What is the Kisan Credit Card (KCC) scheme primarily designed to provide to farmers?

A

The KCC scheme provides farmers with adequate and timely credit for short-term crop cultivation, post-harvest expenses, and maintenance of farm assets.

Q

For a Farmers' Producer Company to be counted towards the small and marginal farmer sub-target, what minimum membership criterion must be met?

A

Membership of small and marginal farmers must be not less than 75% in number AND their land-holding share not less than 75% of total holding

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