In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities ?

Correct Option (a)

Commercial Banks have consistently held the largest share in the disbursement of credit to agriculture and allied activities in India. They typically account for over 60% of the total institutional agricultural credit, making them the primary source of formal credit for the sector.

Incorrect Options:

Cooperative Banks play a significant role in rural credit, but their share in agricultural credit disbursement is generally in the range of 25-30%, which is considerably lower than that of commercial banks. Regional Rural Banks (RRBs) also contribute to agricultural lending, primarily to small and marginal farmers, but their share is approximately 10% of the total.

Microfinance Institutions (MFIs) primarily focus on providing small-scale credit to self-help groups (SHGs) and individuals, often for diverse income-generating activities and consumption. While they contribute to financial inclusion, their share in the overall formal agricultural credit disbursement is marginal compared to commercial banks, cooperative banks, and RRBs.