Previous Year Question
Which one among the following is not a programme under RIDF?
Rural Water Supply
Rural Roads
Rural Electrification
Rural Industries
Correct Answer: D
Detailed Solution
This question relates to the Rural Infrastructure Development Fund (RIDF). RIDF was established in 1995-96 and is operated by NABARD.
The original purpose of RIDF was to provide financial support for rural infrastructure projects in the States that remained incomplete because of shortage of funds. Initially, irrigation projects were a major focus, but its scope was subsequently widened considerably.
RIDF supported infrastructure activities such as rural drinking water, rural roads, irrigation, bridges, health and education. The official RIDF-XIX (2013-14) list explicitly included Drinking Water under the Social Sector and Rural Roads under Rural Connectivity.
An important source of RIDF resources is the amount arising from the shortfall of Scheduled Commercial Banks in meeting Priority Sector Lending targets. Thus, resources from the banking system are channelled into the creation of rural infrastructure.
Current Status
The scope of RIDF has expanded substantially over time. Under the present NABARD framework, numerous activities are covered under Agriculture & Related Sector, Social Sector and Rural Connectivity; Dedicated Rural Industrial Estates are also now included among eligible activities.