Which of the following grants/grant direct credit assistance to rural households?

1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks

Select the correct answer using the codes given below.

• Regional Rural Banks (RRBs): These banks were established to provide direct credit assistance to rural and agricultural sectors, small entrepreneurs, and artisans. They play a significant role in meeting the credit needs of rural households.
• National Bank for Agriculture and Rural Development (NABARD): NABARD primarily functions as an apex development bank with a mandate for facilitating credit flow for the promotion and development of agriculture, cottage, and village industries, and other rural crafts. It primarily provides refinancing to financial institutions in rural areas, and its role in direct credit assistance is more indirect than that of RRBs.
• Land Development Banks: Also known as Cooperative Land Development Banks, their primary function is to provide long-term finance to farmers for land improvement and agricultural development projects. They do offer direct credit assistance to rural households, particularly for purposes like land development and agricultural improvement.

Based on these roles, the institutions that grant direct credit assistance to rural households are:

1. Regional Rural Banks (RRBs)
2. Land Development Banks

The National Bank for Agriculture and Rural Development (NABARD) mainly plays an indirect role through refinancing and development functions rather than providing direct credit assistance to individual rural households.