Explain the institutional sources of Agricultural Credit in India.

The main aim of institutional sources of agricultural credit is to provide timely and adequate credit to farmers for increasing their agricultural productions. 

Institutional sources of agricultural credit in India are as follows: 

(i) National Bank for Agriculture and Rural Development (NABARD): It is at the top of banking institutions providing finance for agriculture and rural development, promotion of agriculture, small-scale industries, cottage, and village industries, handicrafts, etc. NABARD today is totally owned by the Government of India. 

(ii) Rural Co-operative Credit Institutions: 

It is divided into: 

• Short-term credit co-operatives: This co-operative works through its threetier structure i.e. PACS, DCCB, and SCB. 
• Long-term credit co-operatives: These co-operatives look after the long-term credit requirements of the farmers.

It works through two banks i.e. Primary Cooperative Agriculture and Rural Development Banks and State Co-operative Agriculture and Rural Development Banks. 

Primary Co-operative Agriculture and Rural Development Banks work at the village level as an independent unit while State Cooperative Agriculture and Rural Development Banks work at the State level through its branches in villages. 

(iii) Commercial Banks (CBs): They provide rural credit by opening their branches in rural areas. 

(iv) Regional Rural Banks (RRBs): Such banks are established under RRB Act, 1976. They are rural-oriented with a low-cost profile of cooperatives. They work with professional discipline and the modern outlook of Commercial banks.

(v) Micro Finance Institutions (MFIs): These are the institutions providing financial services to poor people or new businesses that cannot use traditional banking services. Such institutions are generally run by NGOs.