Agricultural Development: Institutional, Technological Aspects and Reforms: RAS Prelims MCQs
99 RAS Prelims MCQs on agricultural development cover institutional reforms, technology and the Green Revolution. The abolition of intermediaries, tenancy laws, consolidation of holdings, cooperative farming, the 97th Amendment and the Green Revolution’s first phase are asked as facts, sequences and statements, with the explanations linking each reform to its State or year.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Q51. Read the following institutional developments in agricultural credit in India and select the correct chronological order from the options given below: I. Establishment of NABARD. II. Establishment of the Agricultural Refinance and Development Corporation (ARDC). III. Passage of the Cooperative Credit Societies Act. IV. Nationalization of 14 major commercial banks.
Explanation
The evolution of agricultural credit in India followed a clear path. It began with the Cooperative Credit Societies Act in 1904. Later, the Agricultural Refinance and Development Corporation was established in 1963. This was followed by the nationalization of fourteen major commercial banks in 1969. Finally, NABARD was established in 1982 to consolidate and lead the rural credit system in the country.
Q52. Which of the following best describes the primary lending function of NABARD?
Explanation
NABARD does not typically provide direct loans to individual farmers. Instead, its primary function is to act as an apex refinancing agency. It provides financial resources to other institutions, such as cooperative banks and regional rural banks, which then lend directly to farmers. This structure ensures that rural credit reaches the ground level through a well-organized network of local financial intermediaries.
Q53. Which of the following functions is generally an exception to the operations performed by NABARD?
Explanation
NABARD performs several critical roles, including providing refinance to State Cooperative Banks and supervising Regional Rural Banks. It also manages the Rural Infrastructure Development Fund. However, providing direct crop loans to individual farmers is an exception to its operations. Such retail lending is handled by primary cooperative societies, commercial banks, and regional rural banks using NABARD’s refinance support.
Q54. Consider the following functions: I. Inspecting District Central Cooperative Banks (DCCBs). II. Providing refinance support for rural non-farm sectors. III. Regulating the monetary policy and setting the repo rate. IV. Promoting microfinance initiatives like SHG-Bank Linkage Programme. Which of the above statements regarding functions performed by NABARD is/are correct?
Explanation
NABARD is responsible for inspecting District Central Cooperative Banks and providing refinance for both agricultural and rural non-farm sectors. It also plays a key role in promoting microfinance through initiatives like the SHG- Bank Linkage Programme. However, it does not regulate monetary policy or set repo rates; those functions are the sole responsibility of the Reserve Bank of India.
Q55. The Kisan Credit Card (KCC) scheme, designed to provide adequate and timely credit support from the banking system to the farmers, was introduced in which year?
Explanation
The Kisan Credit Card scheme was introduced in 1998-99 to streamline the delivery of credit to farmers. This initiative was designed to ensure that farmers have access to adequate and timely credit for their agricultural needs through a simplified procedure. Since its launch, it has become a vital tool for providing short-term financial support to millions of rural households.
Q56. Which of the following statements about the scope of the Kisan Credit Card (KCC) scheme is correct?
Explanation
The Kisan Credit Card scheme offers a comprehensive credit limit that covers various financial needs of farmers. It provides short-term credit for crop cultivation expenses, such as seeds and fertilizers, and also covers post-harvest costs. Additionally, it allows for a portion of the credit to be used for the consumption requirements of the farmer’s household and the maintenance of farm assets.
Q57. Match the Kisan Credit Card (KCC) Features listed in List I with their Descriptions in List II and select the correct answer using the options given below:
KCC Features
Descriptions
A. Issuing Institutions
i. Commercial Banks, RRBs, and Cooperative Banks
B. Coverage extension
ii. ATM-enabled electronic card for KCC withdrawal
C. Repayment period
iii. Extended to animal husbandry and fisheries farmers
D. RuPay Card
iv. Fixed as per the harvesting and marketing period for the crop
Explanation
The KCC scheme is implemented by commercial banks, RRBs, and cooperative banks. Its coverage has been extended beyond crop cultivation to include animal husbandry and fisheries. The repayment period is typically aligned with the harvesting and marketing cycles of the crops. Modernization has introduced the RuPay Card, an ATM-enabled electronic card that allows farmers to withdraw funds conveniently.
Q58. What is the primary operational advantage of linking the Kisan Credit Card (KCC) scheme with the RuPay network?
Explanation
Linking the Kisan Credit Card with the RuPay network has significantly enhanced the operational convenience for farmers. This integration allows them to use their cards to withdraw cash seamlessly from any ATM. Furthermore, it enables Point of Sale transactions at merchant outlets, making it easier for farmers to purchase agricultural inputs like seeds and fertilizers directly from authorized dealers using their credit limit.
Q59. Consider the following financial requirements of a farmer: I. Short-term credit for crop cultivation. II. Post-harvest expenses. III. Maintenance of agricultural machinery. IV. Consumption requirements of the farmer household. V. Purchasing land to expand the farm size. Which of the above statement(s) regarding expenses that can be funded within the credit limit of a standard Kisan Credit Card is/are correct?
Explanation
A standard Kisan Credit Card is designed to meet the immediate and recurring expenses of a farm household. This includes short-term credit for cultivation, post-harvest expenses, and the maintenance of agricultural machinery. It also accounts for the consumption needs of the farmer’s family. However, KCC funds are generally not intended for long-term capital investments like purchasing additional agricultural land.
Q60. Which institutional body is responsible for recommending the Minimum Support Prices (MSP) for mandated agricultural crops to the Government of India?
Explanation
The Commission for Agricultural Costs and Prices is the specialized body responsible for recommending Minimum Support Prices to the Government of India. The CACP analyzes various factors, including the cost of production, market price trends, and the need for crop diversification, before submitting its recommendations. The final decision on the MSP is then taken by the central government.
Answer key for these questions
Q
Correct answer
51
(a) III, II, IV, I
52
(c) It acts as an apex refinancing agency for institutions providing investment and production credit in rural areas.
53
(b) Providing direct crop loans to individual farmers.
54
(a) I, II and IV only
55
(b) 1998-99
56
(c) It provides short-term credit for crop cultivation, post-harvest expenses, and consumption requirements of farmer households.
57
(a) A-i, B-iii, C-iv, D-ii
58
(d) It allows farmers to seamlessly withdraw cash from ATMs and make Point of Sale (PoS) transactions.
59
(b) I, II, III and IV only
60
(c) Commission for Agricultural Costs and Prices (CACP)
Key facts from Agricultural Development: Institutional, Technological Aspects and Reforms
Agriculture and allied sectors contribute about 18.3 per cent of India’s Gross Value Added.
Madras was the first State in independent India to legislate for the abolition of the Zamindari system.
The Rajasthan Tenancy Act, which gave statutory rights to tenants, was passed in 1955.
Consolidation of holdings, which joins fragmented parcels into a compact block, has been most successful in Punjab and Haryana.
The 97th Amendment Act, 2011 gave constitutional status to cooperative societies.
M. S. Swaminathan is the chief architect of the Green Revolution, whose first phase was mainly confined to wheat and rice.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Agricultural Development: Institutional, Technological Aspects and Reforms?
This page has 99 practice MCQs on Agricultural Development: Institutional, Technological Aspects and Reforms (Indian Economy). Each has the correct answer, and most have an explanation.
What is the objective of consolidation of landholdings?
To amalgamate fragmented parcels of land into a single compact block. It reduces the cost of cultivation, saves time and makes irrigation and mechanisation easier, and it has worked best in Punjab and Haryana.
Which amendment gave constitutional status to cooperative societies?
The 97th Amendment Act of 2011. It made the right to form cooperative societies a fundamental right under Article 19 and added a Directive Principle on promoting them.
Who is the father of the Green Revolution in India?
M. S. Swaminathan is widely regarded as the chief architect of the Green Revolution in India. The first phase, from the mid-1960s to the mid-1970s, was largely limited to wheat and rice in irrigated areas.
