Q. With reference to the Lead Bank Scheme (LBS), consider the following statements:
1.It was introduced by the Reserve Bank of India on the recommendations of the Nariman Committee.
2.The primary objective of the scheme is to provide direct agricultural subsidies to farmers through commercial banks.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation:

  • Statement 1 is correct: The Lead Bank Scheme was introduced by the RBI based on the recommendations of the Nariman Committee.
  • Statement 2 is incorrect: The scheme does not provide direct subsidies. Its objective is to coordinate banking and developmental activities to enhance credit flow to priority sectors and promote rural development.

Source- TH

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