Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — Commercial Banks
Concept & Option Breakdown
Standard Reference VerifiedCommercial banks account for the overwhelming majority (around 70–75%+) of total institutional credit disbursed to the agriculture and allied sector in India, driven by mandatory Priority Sector Lending (PSL) targets (18% of ANBC for agriculture) and expansive branch networks. Cooperative Banks and RRBs hold secondary shares.
Commercial Banks possess the largest asset base, widest network, and heaviest regulatory mandate (PSL quotas), making their volume share dominant across all credit segments.
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