NABARD Grade A Agriculture and Rural Development with Banking (ARD) Flashcards

24 sample cards from the Agriculture and Rural Development with Banking (ARD) deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is farm mechanization, and what does the SMAM scheme support?

   Farm mechanization is the use of machines (tractors, harvesters, threshers) to perform farm operations efficiently. The Sub-Mission on Agricultural Mechanization (SMAM) subsidizes machinery and sets up Custom Hiring Centres for small farmers.

2. What is a Custom Hiring Centre (CHC) in agricultural mechanization?

   A unit that owns farm machinery and rents it out to farmers (especially small/marginal ones) on a per-use basis, making costly equipment affordable without ownership.

3. What is the main objective of agricultural extension?

   To transfer scientific knowledge, improved technology, and best practices from research institutions to farmers, helping them increase productivity and improve livelihoods. Krishi Vigyan Kendras (KVKs) are key extension centres.

4. What are the three main functions of agricultural marketing?

   Assembling (collecting produce), processing/grading (adding value and standardizing quality), and distribution (transport and final sale to consumers). It bridges producers and consumers.

5. What is the difference between MSP, APMC mandis, and e-NAM?

   MSP (Minimum Support Price): government-guaranteed floor price for crops. APMC: regulated physical wholesale markets (mandis). e-NAM (electronic National Agriculture Market): an online pan-India trading platform networking mandis.

6. Define rural development and list its key dimensions.

   Rural development is the process of improving the quality of life and economic well-being of people in rural areas. Key dimensions: economic growth, social development, infrastructure, poverty reduction, and sustainability.

7. Why is rural development significant for India's overall economy?

   Around 65% of India's population lives in rural areas and ~45% of the workforce depends on agriculture. Rural development reduces poverty/inequality, curbs urban migration, and is essential for inclusive national growth.

8. What are the core components of rural infrastructure?

   Physical infrastructure (roads, electricity, irrigation), social infrastructure (schools, health centres, drinking water/sanitation), and institutional infrastructure (markets, banks, cooperatives, storage/warehousing).

9. What is the RIDF, and who administers it?

   The Rural Infrastructure Development Fund (RIDF), set up in 1995–96 and administered by NABARD, finances rural infrastructure projects (irrigation, roads, bridges) of state governments using contributions from banks falling short of priority-sector lending targets.

10. What is the aim of the Pradhan Mantri Gram Sadak Yojana (PMGSY)?

    To provide all-weather road connectivity to unconnected eligible rural habitations, improving market access, mobility, and rural economic integration.

11. What does MGNREGA guarantee, and what is its key feature?

    The Mahatma Gandhi National Rural Employment Guarantee Act (2005) guarantees 100 days of wage employment per financial year to every rural household whose adults volunteer for unskilled manual work, with a legal right to work and unemployment allowance if not provided.

12. What is the objective of the Deendayal Antyodaya Yojana–NRLM (DAY-NRLM)?

    To reduce rural poverty by organizing poor households (especially women) into Self-Help Groups (SHGs) and federations, providing them financial access and sustainable livelihood opportunities.

13. What is the goal of PMAY-Gramin (Pradhan Mantri Awas Yojana–Gramin)?

    To provide a pucca (permanent) house with basic amenities to all eligible homeless and those living in dilapidated houses in rural areas, advancing the 'Housing for All' mission.

14. Which constitutional amendment gave Panchayati Raj Institutions constitutional status, and what three tiers did it establish?

    The 73rd Constitutional Amendment Act, 1992. It established a three-tier system: Gram Panchayat (village), Panchayat Samiti / Block (intermediate), and Zila Parishad (district).

15. What is the Gram Sabha, and why is it important in Panchayati Raj?

    The Gram Sabha is the assembly of all registered voters in a village. It is the foundation of grassroots democracy and decentralisation, approving plans/budgets, selecting beneficiaries, and holding the Gram Panchayat accountable.

16. What reservation does the 73rd Amendment mandate in Panchayati Raj institutions?

    At least one-third (33%) of seats reserved for women (many states raised it to 50%), plus reservation for SCs and STs in proportion to their population. Elections every 5 years are mandatory.

17. What are the three tiers of India's rural financial (institutional credit) system?

    Commercial Banks (including RRBs), Cooperative Banks (a three-tier structure of State, District/Central, and Primary societies), and Microfinance/SHG-bank linkage. NABARD is the apex refinancing and supervisory body.

18. Describe the three-tier structure of short-term rural cooperative credit in India.

    State Cooperative Bank (SCB) at the state apex, District Central Cooperative Banks (DCCBs) at the district level, and Primary Agricultural Credit Societies (PACS) at the village level dealing directly with farmers.

19. What are Regional Rural Banks (RRBs), and who are their three shareholders?

    RRBs are scheduled commercial banks set up under the RRB Act 1976 to serve rural/agricultural credit needs. Shareholding: Central Government (50%), Sponsor Bank (35%), and State Government (15%).

20. When was NABARD established, and what are its main roles?

    NABARD (National Bank for Agriculture and Rural Development) was established on 12 July 1982. It is the apex development bank for agriculture and rural development, acting as a refinancing institution, supervisor of cooperative banks and RRBs, and developmental/promotional agency.

21. What is the Kisan Credit Card (KCC) scheme, and which body conceived it?

    The KCC scheme (introduced 1998) provides farmers timely, flexible short-term credit for cultivation and allied needs through a revolving cash-credit limit. It was conceived by NABARD.

22. What is the current overall Priority Sector Lending (PSL) target for commercial banks, and the sub-target for agriculture?

    Banks must lend 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors, with a sub-target of 18% for agriculture (including a portion specifically for small and marginal farmers).

23. Name the major categories included under Priority Sector Lending (PSL).

    Agriculture; Micro, Small and Medium Enterprises (MSMEs); Education; Housing; Export Credit; Renewable Energy; Social Infrastructure; and Weaker Sections.

24. What is financial inclusion, and name two flagship schemes promoting it in India.

    Financial inclusion is ensuring affordable access to formal financial services (savings, credit, insurance, payments) for all, especially the unbanked poor. Flagship schemes: Pradhan Mantri Jan Dhan Yojana (PMJDY) for bank accounts, and the JAM trinity (Jan Dhan–Aadhaar–Mobile) enabling direct benefit transfers; also PMJJBY, PMSBY, and APY for insurance/pension.

What this deck covers

Agriculture and Rural Development with Banking (ARD) flashcards FAQ