The rural local government system is called the [[1]] Institution.

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Detailed Solution

The rural local government system is called the Panchayati Raj Institution.
The 73rd Constitutional Amendment introduced the Panchayati Raj institutions. It divided the powers between the center, state, and local governments. This step was taken to ensure the proper participation of citizens in decision-making. People at the local level better understand the issues and problems in their area. Thus, Panchayati Raj Institutions were introduced as the local level of government in rural areas.

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