Consider the following statements regarding the role of Rural Financial Institutions (RFIs) in India's financial sector as per the Economic Survey 2024-25:
- The government discontinued recapitalization support for Regional Rural Banks (RRBs) in FY24 due to improved profitability and reduced NPAs.
- The net profit of Regional Rural Banks (RRBs) declined in FY24 due to rising NPAs and financial distress, despite government recapitalization efforts.
Which of the statements given above is/are correct?
1
Only 1
2
Only 2
3
Both 1 and 2
4
Neither 1 nor 2