The co-operative movement in India began as a remedy for rural indebtedness, when peasants were at the mercy of moneylenders charging very high interest. The colonial government responded by giving legal recognition to credit societies formed by the people themselves.

The first law for this purpose was the Co-operative Credit Societies Act of 1904, passed during the viceroyalty of Lord Curzon on the lines recommended by the Edward Law committee and the earlier report of Frederick Nicholson. It allowed the registration of primary credit societies in villages and towns.

1901, 1902 and 1903 are years in which the idea was still being studied by committees; no co-operative credit law had yet been enacted. The 1904 Act was later replaced by the wider Co-operative Societies Act of 1912, which permitted non-credit and central societies as well.

1904 option is correct.