Question

Which set correctly lists the agencies involved in the multi-agency approach to rural credit?

Options

• Only commercial banks and foreign banks

• Co-operative societies, commercial banks, Regional Rural Banks (RRBs), micro-finance institutions, and Self-Help Groups (SHGs)

• Only co-operative societies and moneylenders

• Only Regional Rural Banks (RRBs) and insurance companies

Answer 1

The multi-agency approach to rural credit comprises co-operative societies, commercial banks, Regional Rural Banks (RRBs), micro-finance institutions, and Self-Help Groups (SHGs). Together, these institutions replaced the earlier reliance on moneylenders.