Explanation:

• In 1901 the Famine Commission recommended the establishment of Rural Agricultural Banks through the establishment of Mutual Credit Associations, and such steps were taken by the Government of North Western provinces and Oudh.
• The underlying idea of a number of persons combining together was the voluntary creation of a new and valuable security.
• A strong association competent to offer guarantees and advantages of lending to groups instead of individuals were major advantages.
• The Commission also suggested the principles underlying Agricultural Banks.
• • Cooperative Credit Societies Act, 1904 - The First Incorporation Taking cognizance of these developments and to provide a legal basis for cooperative societies, the Edward Law Committee with Mr.
• Nicholson as one of the members was appointed by the Government to examine and recommend a course of action.
• The Cooperative Societies Bill, based on the recommendations of this Committee, was enacted on 25th March 1904.
• As its name suggests, the Cooperative Credit Societies Act was restricted to credit cooperatives.
• Hence option 1 is correct.
• • Maclagen Committee on Cooperation (1914) - The Banking Crisis and the First World War both affected the growth of cooperatives.
• Although member deposits in cooperatives increased sharply, the war affected the export and prices of cash crops adversely, resulting in increased over-dues of loans of primary agricultural societies.
• Hence option 2 is correct.
• • In 1944, the Gadgil Committee recommended compulsory adjustment of debts and setting up of Agricultural Credit Corporations, wherever cooperative agencies were not strong enough.
• Hence, option 3 is correct.
• • A major watershed initiative at this time was the appointment by the Government of the Gorwala Committee, popularly known as the All India Rural Credit Survey Committee.
• The Committee was appointed in 1951 and submitted its report in 1954.
• It observed that large parts of the country were not covered by cooperatives and in such areas where it had been covered, a large segment of the agricultural population remained outside its membership.
• Hence, option 4 is correct.