MCQ
Grant-in-Aid to National Cooperative Development Corporation (NCDC) MCQ - Practice Questions with Answers
Solve 5 Grant-in-Aid to National Cooperative Development Corporation (NCDC) questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about the Grant-in-Aid to NCDC scheme: 1. NCDC may provide loans to cooperatives either through state governments or directly, subject to its guidelines. 2. Direct financial assistance is available to every cooperative without any security or state government guarantee. Which option is correct?
Statement 1 is correct: NCDC can lend through a state government or directly under its guidelines. Statement 2 is false because direct assistance is not unconditional. A cooperative must satisfy the direct-funding criteria, and assistance is considered against admissible security or a state government guarantee. Hence only statement 1 is correct.
Q2What is the annual grant allocation under the ₹2,000 crore Grant-in-Aid to NCDC scheme for the four-year period from FY 2025-26 to FY 2028-29?
The approved grant totals ₹2,000 crore over four financial years, from FY 2025-26 through FY 2028-29. The allocation is ₹500 crore in each year; multiplying ₹500 crore by 4 gives the full ₹2,000 crore outlay. This distinguishes the annual flow from the scheme's aggregate budget.
Q3Which of the following is incorrect regarding the uses and expected effects of loans under the Grant-in-Aid to NCDC scheme?
The restriction in option D is incorrect. Scheme-supported loans are not confined to working capital: they may finance new projects, plant expansion, modernization and technology upgradation, besides meeting working-capital needs. Infrastructure term loans are also expected to create employment. Therefore, D contradicts the stated breadth of eligible lending purposes.
Q4Match List I with List II for the Grant-in-Aid to NCDC scheme. List I: 1. Total government grant; 2. Open-market funds to be raised by NCDC; 3. Scheme period; 4. Annual grant. List II: a. ₹500 crore; b. ₹20,000 crore; c. ₹2,000 crore; d. FY 2025-26 to FY 2028-29. Select the correct match.
The government grant is ₹2,000 crore, while NCDC is expected to use that base to raise ₹20,000 crore from the open market. The scheme runs from FY 2025-26 to FY 2028-29, and the grant is ₹500 crore in each year. Thus the complete match is 1-c, 2-b, 3-d and 4-a; the other sequences interchange amounts or categories.
Q5Which institution is the executing agency for the Central Sector Scheme 'Grant-in-Aid to National Cooperative Development Corporation (NCDC)'?
NCDC is expressly designated as the executing agency. It is responsible for loan disbursement, follow-up, monitoring project implementation and recovering loans made from the fund. Therefore, the institutional role described in the stem belongs to NCDC, not to a banking regulator or another development bank.
You've seen 5 of 5 sample questions
Unlimited practice on Grant-in-Aid to National Cooperative Development Corporation (NCDC) comes with the RAS Test Series + Practice pack or Gate Pass.