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

Commercial banks, option A, have the largest share of agricultural credit in India. In recent years they have typically accounted for roughly 60 to 70 per cent of total agri credit disbursed. The question asks about share of disbursement, not the number of institutions or their village-level reach, and that distinction is what decides it.

• Cooperative banks (B) are the oldest rural credit channel, rooted in the Cooperative Credit Societies Act of 1904, and remain important for short-term crop loans. Their share has steadily declined as commercial banks expanded under priority sector lending.
• Regional Rural Banks (C) were set up under the RRB Act of 1976 with a rural mandate, and they are sponsored by commercial banks. Their share is only around a tenth of the total.
• Microfinance Institutions (D) mainly lend to self-help groups and small borrowers, often for non-farm activity, so their share in agricultural credit is marginal.

For Mains GS-III, this links to agricultural credit, financial inclusion and the priority sector lending target (currently 18 per cent of Adjusted Net Bank Credit for agriculture). Figures shift each year, so remember the ranking rather than exact percentages.

Trap: Aspirants pick cooperatives because they are the traditional farm lenders, or RRBs because of their rural focus, and ignore the volume share.