Question

Assertion (A): Indian rural credit system was significantly transformed with the implementation of technological reforms in agriculture sector.

Reason (R): Green Revolution led to the diversification of the portfolio of rural credit towards production-oriented lending.

विकल्प

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Explanation:

The Indian rural credit system underwent significant transformation during the green revolution, as new technology and high-yield crops increased the demand for production-based loans. As a result, rural credit moved from consumption to production-oriented lending, supporting Reason (R) as the correct explanation for Assertion (A).