Cooperative & Rural Banks MCQs

Assam General Knowledge

Module 22: Assam Economy & Banking Awareness MCQs

Topic: Cooperative & Rural Banks MCQs

Sub-Topic I: Concept & Importance of Cooperative and Rural Banking

Q1. Cooperative banks in Assam are mainly established to serve which section of the population?

A. Industrialists
B. Urban elites
C. Rural and agricultural communities
D. Foreign investors

Correct Answer: C. Rural and agricultural communities

Explanation:
Cooperative banks are designed to provide affordable credit to farmers, artisans, and rural households, especially where commercial banking penetration is limited.

Q2. Rural banking in Assam is most closely linked with which economic activity?

A. Heavy industries
B. Information technology
C. Agriculture and allied activities
D. Export trade

Correct Answer: C. Agriculture and allied activities

Explanation:
Assam’s economy is predominantly agrarian, making rural and cooperative banks crucial for farm credit, fisheries, dairy, and allied sectors.

Q3. Cooperative banking in Assam is based on which principle?

A. Profit maximisation
B. Mutual help and cooperation
C. Government ownership only
D. Corporate control

Correct Answer: B. Mutual help and cooperation

Explanation:
Cooperative banks function on the principle of mutual assistance, where members are both owners and customers.

Q4. Which sector benefits the most from cooperative and rural banking in Assam?

A. Defence
B. Agriculture
C. Aviation
D. Mining

Correct Answer: B. Agriculture

Explanation:
Farmers depend on cooperative and rural banks for crop loans, seeds, fertilisers, and irrigation-related credit.

Q5. The main goal of rural banking is to:

A. Increase urban wealth
B. Promote financial inclusion
C. Encourage stock market investment
D. Support multinational companies

Correct Answer: B. Promote financial inclusion

Explanation:
Rural banking aims to bring unbanked rural populations into the formal financial system.

Sub-Topic II: Cooperative Banking Structure in Assam

Q6. Cooperative banking structure in Assam follows how many tiers?

A. One-tier
B. Two-tier
C. Three-tier
D. Four-tier

Correct Answer: C. Three-tier

Explanation:
The cooperative credit structure consists of State Cooperative Bank → District Central Cooperative Banks → Primary Agricultural Credit Societies (PACS).

Q7. The apex cooperative bank at the state level in Assam is:

A. Assam Gramin Vikash Bank
B. Assam State Cooperative Bank
C. NABARD
D. RBI

Correct Answer: B. Assam State Cooperative Bank

Explanation:
The Assam State Cooperative Bank operates at the state level, guiding and supporting district cooperative banks.

Q8. District Central Cooperative Banks mainly function at which level?

A. National level
B. State level
C. District level
D. Village level

Correct Answer: C. District level

Explanation:
District Central Cooperative Banks act as an intermediate link between the state cooperative bank and PACS.

Q9. Primary Agricultural Credit Societies (PACS) operate at which level?

A. State
B. District
C. Block/Village
D. National

Correct Answer: C. Block/Village

Explanation:
PACS are the grass-root institutions, directly serving farmers and rural borrowers.

Q10. PACS mainly provide which type of credit?

A. Long-term industrial loans
B. Short-term agricultural loans
C. Foreign exchange loans
D. Housing loans only

Correct Answer: B. Short-term agricultural loans

Explanation:
PACS focus on seasonal agricultural operations, providing short-term and medium-term credit.

Sub-Topic III: Regional Rural Banks (RRBs) in Assam

Q11. Which Regional Rural Bank covers the largest area in Assam?

A. Assam Rural Bank
B. North East Rural Bank
C. Assam Gramin Vikash Bank
D. Brahmaputra Gramin Bank

Correct Answer: C. Assam Gramin Vikash Bank

Explanation:
Assam Gramin Vikash Bank (AGVB) is the largest RRB in Assam, with wide district coverage.

Q12. RRBs in Assam are jointly owned by:

A. RBI only
B. State Government only
C. Central Government, State Government, and Sponsor Bank
D. NABARD only

Correct Answer: C. Central Government, State Government, and Sponsor Bank

Explanation:
RRBs follow a tripartite ownership structure, ensuring shared responsibility and stability.

Q13. The sponsor bank of Assam Gramin Vikash Bank is:

A. Punjab National Bank
B. Bank of Baroda
C. State Bank of India
D. Canara Bank

Correct Answer: C. State Bank of India

Explanation:
AGVB is sponsored by State Bank of India, which provides managerial and technical support.

Q14. The main purpose of Regional Rural Banks is to:

A. Serve multinational companies
B. Provide urban luxury banking
C. Extend credit to rural and weaker sections
D. Manage foreign reserves

Correct Answer: C. Extend credit to rural and weaker sections

Explanation:
RRBs are designed to bridge the rural-urban banking gap.

Q15. Which group is a primary beneficiary of RRBs in Assam?

A. Stock traders
B. Farmers and Self-Help Groups
C. Corporate houses
D. Foreign tourists

Correct Answer: B. Farmers and Self-Help Groups

Explanation:
RRBs strongly support farmers, SHGs, artisans, and small entrepreneurs.

Sub-Topic IV: Role of NABARD in Cooperative & Rural Banking

Q16. Which institution plays a key role in strengthening cooperative and rural banks?

A. SEBI
B. NABARD
C. RBI
D. EXIM Bank

Correct Answer: B. NABARD

Explanation:
NABARD is the apex development institution for agriculture and rural credit.

Q17. NABARD mainly provides which type of support to banks in Assam?

A. Direct consumer loans
B. Refinance and developmental support
C. Defence funding
D. Foreign currency management

Correct Answer: B. Refinance and developmental support

Explanation:
NABARD refinances loans issued by cooperative banks and RRBs, strengthening rural credit flow.

Q18. NABARD was established primarily to promote:

A. Urban banking
B. Capital markets
C. Rural development and agriculture
D. International trade

Correct Answer: C. Rural development and agriculture

Explanation:
NABARD focuses on agriculture, cottage industries, MSMEs, and rural livelihoods.

Q19. NABARD supervises which institutions in Assam?

A. Only private banks
B. Cooperative banks and RRBs
C. Foreign banks
D. Stock exchanges

Correct Answer: B. Cooperative banks and RRBs

Explanation:
NABARD has supervisory powers over cooperative banks and regional rural banks.

Q20. The role of NABARD is crucial in Assam because:

A. Urbanisation is very high
B. Economy is rural-dominated
C. Heavy industries dominate
D. Coastal trade is important

Correct Answer: B. Economy is rural-dominated

Explanation:
Assam’s economy depends heavily on rural and agricultural activities, making NABARD’s role vital.

Sub-Topic V: Cooperative & Rural Banks in Financial Inclusion

Q21. Cooperative and rural banks contribute to financial inclusion by:

A. Promoting luxury banking
B. Providing basic banking in villages
C. Investing in stock markets
D. Offering offshore accounts

Correct Answer: B. Providing basic banking in villages

Explanation:
They offer savings accounts, credit, and insurance in remote areas.

Q22. Which scheme strengthened rural banking outreach in Assam?

A. GST
B. PMJDY
C. SEZ Policy
D. Make in India

Correct Answer: B. PMJDY

Explanation:
The Pradhan Mantri Jan Dhan Yojana expanded banking access through rural and cooperative banks.

Q23. Self-Help Group (SHG)–Bank linkage is mainly supported by:

A. RBI
B. Commercial banks only
C. NABARD
D. SEBI

Correct Answer: C. NABARD

Explanation:
NABARD pioneered and supports the SHG-Bank linkage programme.

Q24. Which banking facility is most important for rural households?

A. Credit cards
B. Crop loans
C. Forex services
D. Merchant banking

Correct Answer: B. Crop loans

Explanation:
Crop loans help farmers meet seasonal agricultural expenses.

Q25. Cooperative banks help rural Assam mainly by:

A. Reducing imports
B. Supporting agriculture and livelihoods
C. Promoting luxury consumption
D. Controlling inflation directly

Correct Answer: B. Supporting agriculture and livelihoods

Explanation:
They provide affordable credit and financial stability to rural communities.

Sub-Topic VI: Exam-Oriented Analytical Questions

Q26. Cooperative and rural banks are especially important in Assam because:

A. Industrialisation is high
B. Rural population is large
C. Urban income dominates
D. Export economy is strong

Correct Answer: B. Rural population is large

Explanation:
A large proportion of Assam’s population lives in rural areas, requiring targeted banking support.

Q27. Which institution plays the most direct role in village-level credit delivery?

A. RBI
B. NABARD
C. PACS
D. SEBI

Correct Answer: C. PACS

Explanation:
PACS are the closest banking institutions to farmers.

Q28. Why are Cooperative & Rural Banks MCQs important for Assam exams?

A. They are rarely asked
B. They link economy, agriculture, and governance
C. They are only theoretical
D. They focus on foreign trade

Correct Answer: B. They link economy, agriculture, and governance

Explanation:
These topics reflect grass-root economic development, a key Assam GK area.

Q29. Cooperative banking strengthens which aspect of Assam’s economy the most?

A. Capital markets
B. Rural credit system
C. Foreign exchange reserves
D. Defence production

Correct Answer: B. Rural credit system

Explanation:
Cooperative banks ensure timely and affordable rural credit.

Q30. Understanding cooperative and rural banking is most useful for:

A. Language exams
B. Preliminary objective exams
C. Optional mathematics
D. Interview etiquette

Correct Answer: B. Preliminary objective exams

Explanation:
Most Assam-based exams include objective MCQs on banking awareness and rural economy.

• Assam Cooperative Banks MCQs

• Rural Banking in Assam GK

• Regional Rural Banks in Assam MCQs

• NABARD and Cooperative Banking MCQs

• Assam Economy Banking Awareness MCQs

• Cooperative Credit Structure in Assam

• Rural Banking MCQs for Assam Exams

🔹 Importance of Cooperative & Rural Banks MCQs for Assam Exams

This well-structured set of Cooperative & Rural Banks in Assam MCQs provides aspirants with clear conceptual understanding of cooperative credit institutions, PACS, district and state cooperative banks, regional rural banks, NABARD, and financial inclusion mechanisms in Assam. These topics are extremely important in Assam-centric competitive examinations due to the state’s agrarian and rural-dominated economy.

Prepared strictly in accordance with the Assam-specific General Knowledge and Banking Awareness syllabus, these MCQs are highly useful for APSC, UPSC, Assam Police, TET, Forest, Banking, Grade III & IV, CEE, as well as SEBA, AHSEC, ASSEB, CBSE, and college & university examinations across Assam. Regular practice strengthens banking concepts, rural economy understanding, and prelims performance.

🔹 FAQ Section

FAQ 1: Are Cooperative & Rural Banks MCQs important for APSC exams?

Yes. These MCQs are fully aligned with the APSC Assam Economy and Banking syllabus and are frequently asked in prelims.

FAQ 2: Do these MCQs cover PACS, RRBs and NABARD in Assam?

Yes. The questions comprehensively cover PACS, district and state cooperative banks, regional rural banks, and NABARD’s role in Assam.

FAQ 3: Are these MCQs relevant for Banking and Grade III/IV exams?

Absolutely. Rural banking and cooperative credit are core topics for Banking, Grade III & IV, and Assam Police examinations.

FAQ 4: Are the explanations suitable for beginners?

Yes. Each MCQ includes a simple, concept-clearing explanation, making it ideal for beginners as well as advanced aspirants.

FAQ 5: How should aspirants prepare cooperative and rural banking topics effectively?

Aspirants should revise these MCQs along with current rural banking schemes, NABARD initiatives, and Assam economy topics for best results.