Which among the following banks is authorized for providing credit for the development of agriculture?

Correct option is A

Correct Answer: (a)
Explanation:
· NABARD (National Bank for Agriculture and Rural Development) is the apex development bank in India that focuses on providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, and other rural crafts.
· It is the specialized institution authorized for refinancing and credit flow for agriculture and rural development.
Information Booster:
· NABARD was established on July 12, 1982, based on the recommendations of the Sivaraman Committee.
· It is a statutory body established under the National Bank for Agriculture and Rural Development Act, 1981.
· NABARD plays a crucial role in strengthening the rural credit delivery system and ensuring adequate financial support to the agricultural sector.
Additional Knowledge:
· (b) RBI (Reserve Bank of India): It is the central bank of India, responsible for monetary policy, issuance of currency, and regulation of the entire banking system. While it oversees all banks, it does not directly provide credit for agricultural development; rather, it regulates the flow of credit.
· (c) SBI (State Bank of India): It is the largest commercial bank in India. It provides direct credit to agriculture (as a commercial function), but it is not the authorized apex bank specifically for providing and regulating development credit like NABARD.
· (d) SIDBI (Small Industries Development Bank of India): It is the principal financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprises (MSME) sector, not agriculture.