At the time of independence, moneylenders and traders exploited small and marginal farmer and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap

CBSE Class 11 CBSE Class 11 Economics
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1

At the time of independence, moneylenders and traders exploited small and marginal farmer and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multi agency approach to adequately meet the needs of rural credit Can you highlight the major institutional sources of rural credit.(VBQ)

2

The main institutional sources of rural credit are:
(i) Co-operative credit societies
(ii) Commercial banks
(iii) Regional rural banks
(iv) National Bank for Agriculture and Rural Development (NABARD)