Question

what is meant by rural credit?

Answer 1

RURAL CREDIT, EVOLUTION OF SINCE 1952

RURAL CREDIT, EVOLUTION OF SINCE 1952 India's rural credit system is divided into two segments: an unorganized or informal system of moneylenders, traders, and input suppliers; and a formal, organized segment constituted by cooperative banks, regional rural banks, commercial banks, and nonbanking financial companies. In recent years, the move to strengthen formal credit institutions was justified by not only the demands of modern inputs but also usurious moneylending practices that could not otherwise be countered effectively. India's ideological commitment to encouraging a "cooperative commonwealth" also played a role, especially in strengthening cooperative credit institutions at all levels.