UPSC Prelims 2020— Question 89

This question tests district central cooperative banks. The key concept is: DCCBs are the middle tier of the short-term cooperative credit structure and play an important role in financing Primary Agricultural Credit Societies. Scheduled commercial banks and RRBs have a larger aggregate role in agricultural credit delivery than DCCBs, so the first statement is incorrect while the second describes a core DCCB function. The verified answer for the uploaded Set-B paper is option B. Option A — 1 only: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: DCCBs are the middle tier of the short-term cooperative credit structure and play an important role in financing Primary Agricultural Credit Societies. Scheduled commercial banks and RRBs have a larger aggregate role in agricultural credit delivery than DCCBs, so the first statement is incorrect while the second describes a core DCCB function. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option B — 2 only: This is the correct option. It matches the verified conclusion because DCCBs are the middle tier of the short-term cooperative credit structure and play an important role in financing Primary Agricultural Credit Societies. Scheduled commercial banks and RRBs have a larger aggregate role in agricultural credit delivery than DCCBs, so the first statement is incorrect while the second describes a core DCCB function. The wording of the option is consistent with the governing concept tested by the question. Option C — Both 1 and 2: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: DCCBs are the middle tier of the short-term cooperative credit structure and play an important role in financing Primary Agricultural Credit Societies. Scheduled commercial banks and RRBs have a larger aggregate role in agricultural credit delivery than DCCBs, so the first statement is incorrect while the second describes a core DCCB function. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option D — Neither 1nor 2: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: DCCBs are the middle tier of the short-term cooperative credit structure and play an important role in financing Primary Agricultural Credit Societies. Scheduled commercial banks and RRBs have a larger aggregate role in agricultural credit delivery than DCCBs, so the first statement is incorrect while the second describes a core DCCB function. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. For UPSC-style elimination, first identify the exact proposition being tested, then evaluate each statement independently before comparing the answer codes. Avoid treating a broad or absolute statement as correct merely because its general theme is familiar. The precise qualifiers in the question—such as 'all', 'only', 'cannot', 'largest', 'always' or a specific institutional role—often determine the answer. On that basis, option B is the verified answer.