Which of the following banking institutions played an instrumental role in financial inclusion through microfinance loans and their expansion in India?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. National Bank for Agriculture and Rural Development.
NABARD (National Bank for Agriculture and Rural Development) has played a pivotal role in promoting financial inclusion in India, particularly through the expansion of microfinance loans. Established in 1982, NABARD provides refinancing support to banks, cooperative societies, and self-help groups engaged in rural development. It facilitates credit flow to small farmers, rural artisans, and underserved communities, promoting income-generating activities. By supporting microfinance institutions and innovative financial models, NABARD has significantly strengthened rural livelihoods, reduced dependence on informal lenders, and advanced inclusive economic growth across India.