Which of the following statements is true in the context of rural credit?

1. Money lenders and traders exploited small and marginal farmers by lending to them on high interest rates and manipulating the accounts to keep them in debt trap.
2. A major change was witnessed in the year 1969, when India adopted private lending system.
3. To coordinate the activities of all institutions involved in the rural financing system, NABARD was set up in year 1982.

1 and 3

The correct answer is Option 3: 1 and 3

1. Money lenders and traders exploited small and marginal farmers by lending to them on high interest rates and manipulating the accounts to keep them in debt trap. This is true.
2. A major change was witnessed in the year 1969, when India adopted private lending system. This is false. A major change occurred after 1969 when India adopted social banking and multiagency approach to adequately meet the needs of rural credit.
3. To coordinate the activities of all institutions involved in the rural financing system, NABARD was set up in year 1982. This is true.