Q.Fill in the blank and justify: The apex bank is the channel through which the refinance of __________ reaches the co-operative credit structure of Maharashtra for agriculture and rural development.

One national institution is set up specially to finance agriculture and rural development, and its funds reach the villages through the apex bank.

The correct answer for the blank is NABARD (the National Bank for Agriculture and Rural Development).

NABARD is the country's apex institution for rural and agricultural credit. It provides short-term, medium-term and long-term refinance to the co-operative credit structure, but it does not lend to the villages directly. Instead, the funds flow through the tiers:

• NABARD provides refinance to the Maharashtra State Co-operative Bank (the apex bank).
• The apex bank passes it down to the district central co-operative banks.
• The district banks pass it to the primary village societies, which lend to the farmer. …

Students sometimes write 'the RBI'. Although the RBI is the banking regulator and once refinanced the structure, the institution set up sp …