Question

Given below are two statements:
Statement (I) : After the establishment of NABARD, the Rural Credit Department as well as Rural Planning Cell of the RBI were closed.
Statement (II) : In 2005, the Reserve Bank of India introduced the micro-finance programme for improving the access of rural poor to formal institutional credit as a pilot testing project.
In light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Statement (I) and Statement (II) are correct.
• B. Both Statement (I) and Statement (II) are incorrect.
• C. Statement (I) is correct but Statement (II) is incorrect.
• D. Statement (I) is incorrect but Statement (II) is correct.

Hint:

- Remember that NABARD absorbed the rural credit functions of the RBI in 1982.
- The SHG-Bank Linkage pilot project was initiated by NABARD in 1992, which is a key milestone in micro-finance history.

Answer 1

The Correct Option is C