Consider the following statements : 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks. 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct ?

Statement 2 is correct because District Central Cooperative Banks (DCCBs) act as the intermediary link in the three-tier cooperative credit structure, specifically tasked with financing Primary Agricultural Credit Societies (PACS) at the village level. Statement 1 is incorrect because Scheduled Commercial Banks (SCBs) are the largest providers of agricultural credit, accounting for approximately 75-80% of the total share, followed by Regional Rural Banks (RRBs). The core concept tested is the institutional framework and the relative contribution of different financial entities to agricultural credit in India.