Which of the following microfinance units were established in India at the time of independence?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rural Cooperatives.
At the time of India’s independence in 1947, Rural Cooperatives were among the earliest microfinance institutions established to provide financial services to rural populations, especially farmers and small-scale workers. These cooperatives were designed to offer affordable credit and reduce dependence on moneylenders. Rooted in the cooperative movement that began in the early 20th century, they aimed to support agricultural development, promote savings, and enable self-reliance in rural communities. Over time, rural cooperatives became a crucial part of India's rural credit system, laying the foundation for later microfinance initiatives and playing a key role in financial inclusion across the country.