Which financial institution in India focuses on providing credit for agricultural activities?Question 8AnswerA.SIDBI (Small Industries Development Bank of India)B.NABARD (National Bank for Agriculture and Rural Development)C.HDFC (Housing Development Finance Corporation)D.EXIM Bank (Export-Import Bank of India)
Question
Which financial institution in India focuses on providing credit for agricultural activities?Question 8AnswerA.SIDBI (Small Industries Development Bank of India)B.NABARD (National Bank for Agriculture and Rural Development)C.HDFC (Housing Development Finance Corporation)D.EXIM Bank (Export-Import Bank of India)
Solution
The financial institution in India that focuses on providing credit for agricultural activities is NABARD (National Bank for Agriculture and Rural Development). Here are the steps to answer this question:
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Understand the question: The question is asking about a specific financial institution in India that primarily provides credit for agricultural activities.
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Analyze the options: The options provided are SIDBI, NABARD, HDFC, and EXIM Bank.
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Research each option:
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SIDBI: This is a bank that provides credit to small industries, not specifically agriculture.
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NABARD: This bank was established to provide credit for agriculture and rural development. This fits the criteria of the question.
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HDFC: This is a bank that primarily provides housing loans, not agricultural credit.
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EXIM Bank: This bank primarily deals with export and import transactions, not agricultural credit.
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Choose the correct option: Based on the research, NABARD is the financial institution that focuses on providing credit for agricultural activities in India.
So, the answer is B. NABARD (National Bank for Agriculture and Rural Development).
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