District Central Cooperative Banks (DCCBs)

Commercial banks play the most dominant role in disbursing agricultural credit in India, far exceeding the volume provided by District Central Cooperative Banks (DCCBs) or Regional Rural Banks (RRBs) (Statement 1 is incorrect). The rural cooperative credit structure is three-tiered: State Cooperative Banks at the apex, DCCBs at the district level, and Primary Agricultural Credit Societies (PACS) at the village level. A core function of DCCBs is precisely to route funds down to the PACS (Statement 2 is correct). > One-line conceptual takeaway: Scheduled Commercial Banks are the largest contributors to agricultural credit, not cooperative banks. Answer: (b).