The question asks to identify the incorrect statement regarding the Rural Infrastructure Development Fund (RIDF).

RIDF Scheme Overview

The Rural Infrastructure Development Fund (RIDF) was established by the Government of India to provide loans to state governments and some union territories for developing critical rural infrastructure projects. Let's analyze the given options:

Analysis of Options

• Option 1: Correct. RIDF primarily provides funds to state governments and their related corporations for executing various rural infrastructure projects such as roads, bridges, irrigation, and power infrastructure.
• Option 2: Correct. Initially, RIDF was funded through contributions from commercial banks, specifically those who failed to meet their mandated priority sector lending targets. This ensured banks contributed towards rural development.
• Option 3: Correct. RIDF was indeed established in 1995-96. It was set up with initial corpus of Rs. 2000 Crore and is managed by NABARD (National Bank for Agriculture and Rural Development). The LaTeX notation for the amount is $\text{Rs.}$ 2000 Crore.
• Option 4: Incorrect. This statement claims that the RIDF scheme is now merged with the Kisan Credit Card (KCC). This is factually incorrect. RIDF is a fund for infrastructure projects, while KCC is a credit card scheme providing farmers with easy access to working capital. They serve distinct purposes and have not been merged.

Conclusion on RIDF

Based on the analysis, the statement that RIDF has been merged with Kisan Credit Card (KCC) is incorrect. Therefore, Option 4 is the answer.