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प्रश्न
Critically evaluate the role of the rural banking system in the process of rural development in India.
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उत्तर
With the nationalisation of commercial banks after 1969, the concept of social banking came into existence. It implies extending institutional credit at a moderate rate of interest. The National Bank for Agricultural and Rural Development (NABARD) has made significant progress in the field of rural credit. It cannot be denied that institutional credit has freed the farmers from the trap of money lenders and Mahajans. But, on the other hand, institutional credit is not free from deficiencies. Rural or institutional credit has invariably been associated with security or collateral. Consequently, a substantial number of farmers cannot avail of credit. Also, the commercial banks failed to encourage the habit of thrift among farmers. In addition to this, the leniency on the part of the government to collect taxes was another setback in rural banking. This further led to the emergence of the feeling among the farmers of not repaying the borrowed amount. This increased the defaulter’s rate and led to financial unfeasibility for the rural banks.
संबंधित प्रश्न
Explain the role of microcredit in meeting credit requirements of the poor.
When was the National Bank for Agricultural and Rural Development set up?
______ is the apex body which coordinates the functioning of different financial institutions working for the expansion of rural credit.
The scheme of microfinance is extended through ______.
Which of the following falls under unorganized sector?
Read the following statements carefully and choose the correct alternatives given below:
Statement 1 - The emergence of Self-Help Groups (SHG’s) ensured the reduction in the fissures of the formal credit system.
Statement 2 - The borrowings from SHGs are mainly confined to consumption purposes by their members.
Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.
Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.
Identify which of the following is a source of non-institutional credit in the rural areas of India.
Micro credit programmes play a vital role in ensuring an overall development of the rural economy as they ______.
- provide financial support
- lead to women empowerment
- enhance the reach of formal credit system
State and elaborate whether the following statement is true or false, with valid arguments:
Jan-Dhan Yojana has been a crucial step for financial resource mobilization in the Indian economy.
In which year did the government shift its focus to social banking to meet rural credit needs?
After 1969, which approach did the government adopt to meet rural credit needs?
NABARD acts as the ______ for agriculture and rural credit in India.
Which function of NABARD relates to oversight of co-operative banks and Regional Rural Banks (RRBs)?
SHGs promote financial inclusion especially among which sections of society?
Despite multi-agency efforts, which group of farmers often remains outside the formal credit system?
What is the primary aim of the Jan-Dhan Yojana?
