Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?
- 1.Working capital for maintenance of farm assets
- 2.Purchase of combine harvesters, tractors and mini trucks
- 3.Consumption requirements of farm households
- 4.Post-harvest expenses
- 5.Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below :
Show answer
Answer: B. Under the Kisan Credit Card scheme, short-term credit covers crop cultivation, post-harvest expenses, consumption needs of farm households, and working capital for maintaining farm assets. Buying tractors and harvesters or building houses and cold storage are long-term investments, not short-term crop credit. So 1, 3 and 4.
Watch for: Students assume a farmer's credit card covers every farm-related purchase.
Why the other options are wrong
- A. Wrong because tractors and houses or cold storage are not short-term credit needs.
- C. Wrong because tractors, houses and cold storage are not covered as short-term credit.
- D. Wrong because statements 2 and 5 are not short-term purposes.
Source to check: NABARD / RBI Master Circular on Kisan Credit Card Scheme (rbi.org.in)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.