Question

Which committee recommended the setting of Small Farmers Development Agency (SFDA) and Rural Electrification Corporation (REC) ?

• A. All India Rural Credit Survey Committee
• B. Committee on Co-Operative Credit
• C. All India Rural Credit Review Committee
• D. All India Co-operative Planning Committee

Hint:

The B. Venkatappiah Committee (1969) is the landmark committee for institutionalizing support for "Small Farmers." Always link SFDA and REC to this specific 1969 Review Committee.

Answer 1

The Correct Option is C

Concept: Institutional credit reforms in India have been guided by high-level committees appointed to review the rural credit system and suggest mechanisms to help marginalized groups and infrastructure.

Step 1: Analyze the 1969 Review Committee.
The All India Rural Credit Review Committee was appointed by the Reserve Bank of India in 1966 and submitted its report in 1969 under the chairmanship of B. Venkatappiah. This committee recognized that the benefits of agricultural development were not reaching small and marginal farmers.

Step 2: Identify the specific recommendations.
To address the gaps in institutional credit, the committee recommended:
• The establishment of the Small Farmers Development Agency (SFDA) to specifically cater to the needs of potentially viable small farmers.
• The setting up of the Rural Electrification Corporation (REC) to provide financial assistance for rural electrification projects, which were essential for modernizing agriculture via pump sets.

Step 3: Evaluation of other options.
The All India Rural Credit Survey Committee (1954) recommended the "Integrated Scheme of Rural Credit" and led to the creation of SBI, but not SFDA.