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      Question

      Under the revised KCC Draft Guidelines, the drawing

      limits for credit are proposed to be linked to:Β 
      A The bank's internal risk assessment model Correct Answer Incorrect Answer
      B The farmer's previous year's income declaration Correct Answer Incorrect Answer
      C The Scale of Finance notified by State Level Technical Committees Correct Answer Incorrect Answer
      D The district-level average land holding of the farmer Correct Answer Incorrect Answer
      E The NABARD-prescribed rural credit absorption limits Correct Answer Incorrect Answer

      Solution

      Under the proposed KCC revision, drawing limits will be aligned with the Scale of Finance (SoF) notified annually by State Level Technical Committees (SLTCs). This ensures farmers receive credit that reflects actual cultivation costs rather than arbitrary bank-set limits.

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