Assertion (A): Banks give loans not only to profit-making businesses but also to small cultivators.

Reason (R): The RBI supervises the functioning of formal sources of loans.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

Both (A) and (R) are True and (R) is the correct explanation of (A)

Both (A) and (R) are True and (R) is not the correct explanation of (A)

(A) is True but (R) is False

(A) is False but (R) is True

answer is A.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Banks indeed give loans not only to profit-making businesses but also to small cultivators. For example, the Reserve Bank of India has identified certain key sectors that the banks must consider as priority sectors while giving loans. These sectors include social infrastructure, agriculture, education, housing, energy, export credit, micro, small and medium enterprises, and so on.
The Reserve Bank of India supervises these loan activities of banks to ensure that people in need get enough credit support to make their economic activities more productive. Hence Both (A) and (R) are True and (R) is the correct explanation of (A).

Watch 3-min video & get full concept clarity