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In rural India, the LARGEST source of credit for the poor traditionally has been:
AInformal sector — moneylenders, traders, friends, relatives
BCommercial banks
CRBI
DCooperatives
Answer & Solution
Correct answer: A. Informal sector — moneylenders, traders, friends, relatives
Informal sources (moneylenders, traders, employers, relatives) historically dominate rural credit, especially for poor households. They charge very high interest, often have exploitative terms. Government initiatives push formal sector expansion (RRBs, SHGs, PMJDY).
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