What do you mean by institutional sources of credit ? Explain its objectives

Agricultural credit is very important for the development of agriculture. Private money orders were not sufficient to meet the required demand of the farmers. So after independence multi-agency approach as an institutional credit was adopted in India. Multi-agency approach consists of co¬operatives, commercial banks and regional rural banks. It is called national policy also.
Main objectives of this policy are as follows :
(i) To reduce the importance of money lenders
and to abolish them gradually from rural areas.
(ii) To reduce regional imbalances.