Which of the following with regard to agricultural credit in India (as of 2025) is/are true ? (i)…
"Only (i) is true." According to NABARD's Annual Report 2024-25, agricultural credit intensity—institutional credit flow to agriculture as a share of agricultural Gross…
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Which of the following with regard to agricultural credit in India (as of 2025) is/are true ?
(i) Credit intensity, i.e., credit flows to the agriculture sector as percentage of annual agricultural GVA, which was at about 10% at the beginning of the 21st century, surpassed 50 percent by 2024-25.
(ii) For further increase in credit intensity, government increased KCC limit from 3 lakh to 7 lakh for receiving interest subvention and also increased the limit of collateral free agricultural lending per borrower from 1.6 lakh to 3 lakh.
Answer and explanation
Correct answer A
"Only (i) is true." According to NABARD's Annual Report 2024-25, agricultural credit intensity—institutional credit flow to agriculture as a share of agricultural Gross Value Added (GVA)—rose from about 10 percent at the start of the 21st century to over 50 percent by 2024-25 (statement (i)). Statement (ii) is false because the Kisan Credit Card (KCC) limit for interest subvention was raised from ₹3 lakh to ₹5 lakh (not ₹7 lakh) in the Union Budget 2025-26, and the collateral-free agricultural loan limit was raised by the RBI from ₹1.6 lakh to ₹2 lakh (not ₹3 lakh).
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RPSC Assistant Professor (College Education)