Explain the Institutional sources of agricultural credit.

1.	Explain the Institutional sources of agricultural credit.
Answer» The institutional finance facility gradually developed after independence. The contribution of institutional finance increased to 60% in 2013 since 1951. In order to increase institutional agricultural finance, Reserve Bank of India set up an advisory committee on the flow of credit to agriculture and related activities from the banking system under the chairmanship of Prof. B.S. Vyas. The committee submitted its report in 2004 with its 99 suggestions, out of which 32 suggestions were accepted by the Reserve Bank. The establishment of Cooperative Credit Institutes began in India in 1904. Institutional sources include- Cooperative Societies, Land Development Banks, Regional Rural banks, NABARD.

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