what are the 2 main groups of credit for rural households in india ? state 2 features of each
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Co-Operative Credit Societies:
The cooperative societies are supposed to be the cheapest and most important source of rural credit. When co-operatives were first set up it was thought that they would be able to meet almost the entire credit needs of numerous small and medium farmers.
Commercial Banks:
Before nationalisation of top 14 commercial banks in June 1969, they had an urban bias. They were mainly accepting deposits from the urban people and making loans to trade and industry. Agriculture and rural industries were neglected by them. Since agriculture by its very nature was a risky venture, private commercial banks turned away from rural areas.
The cooperative societies are supposed to be the cheapest and most important source of rural credit. When co-operatives were first set up it was thought that they would be able to meet almost the entire credit needs of numerous small and medium farmers.
Commercial Banks:
Before nationalisation of top 14 commercial banks in June 1969, they had an urban bias. They were mainly accepting deposits from the urban people and making loans to trade and industry. Agriculture and rural industries were neglected by them. Since agriculture by its very nature was a risky venture, private commercial banks turned away from rural areas.
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