Advertisements
Advertisements
प्रश्न
In view of the passage given below. Choose the best option for question.
When talks come to how India has done for itself in 50 years of Independence, the world has nothing but praise for our success in remaining a democracy. On other fronts, the applause is less loud. In absolute terms, India has not done too badly, of course, life expectancy has increased. So has literacy. Industry, which was barely a fledging, has grown tremendously. And as far as agriculture is concerned, India has been transformed from a country perpetually on the edge of starvation into a success story held up for others to emulate. But these are competitive times when change is rapid, and to walk slowly when the rest of the world is running is almost as bad as standing still on walking backwards.
Compared with large chunks of what was then the developing 'world South Korea, Singapore, Malaysia, Thailand, Indonesia. China and what was till lately a separate Hong Kong-India has fared abysmally. It began with a far better infrastructure than most of these countries had. It suffered hardly or not at all during the Second World War. It had advantages like an English speaking elite, quality scientific manpower (including a Nobel laureate and others who could be ranked among the world's best) and excellent business acumen. Yet, today, when countries are ranked according to their global competitiveness. it is tiny Singapore that figures at the top. Hong Kong is an export powerhouse. So is Taiwan. If a symbol were needed of how far we have fallen back. note that while Korean Cielos are sold in India, no one in South Korea is rushing to buy an Indian car. The reasons list themselves. Topmost is economic isolationism.
The government discouraged imports and encouraged self-sufficiency. Whatever the aim was, the result was the creation of a totally inefficient industry that failed to keep pace with global trends and, therefore. became absolutely uncompetitive. only when the trade gates were opened a little did this become apparent. The years since then have been spent merely trying to catch up. That the government actually sheltered its industrialists from foreign competition is a little strange. For in all other respects, it operated under the conviction that businessmen were little more than crookS how were to be prevented from entering the most important areas of the economy, how we're to be hamstrung in as many ways as possible, how we're to be tolerated in the same way as an inexcusable wan. The high expropriation rates of taxation. the licensing Jaws, the reservation of whole swathes of the industry for the public sector, and the granting of monopolies to the public sector firms were the principal manifestations of this attitude. The government forgot that before wealth could be distributed, it had to be created.
The government forgot that it itself could not create, but only squander wealth. some of the manifestations of the old attitude have changed. Tax rates have fallen. Licensing has been a but abolished. And the gates of global trade have been opened wide. But most of these Changes were first by circumstances partly by the foreign exchange bankruptcy of 1991 ana the recognition that the government could no longer muster the funds of support the public sector, leave alone expand it. Whether the attitude of the government itself. or that of more than handful of ministers has changed, is open to question. In many other ways, however, the government has not changed one with. Business still has to negotiate a welter of negotiations. Transparency is still a long way off. And there is no exit policy. In defending the existing policy, politicians betray an inability to see beyond their noses. A no-exit policy for labour is equivalent to a no-entry policy for new business If one industry is not allowed to retrench labour, other industries will think a hundred times before employing new labour. In other way too, the government hurts industries.
Public sector monopolies like the department of telecommunications and Yidesh sanchar Nigam Ltd. make it possible for Indian business to operate only at a cost several times that of their counterparts abroad The infrastructure is in a shambles partly because it is unable to formulate a sufficiently remunerative policy for private business, and partly because it does not have the stomach to change market rates for services. After a burst of activity in the early nineties, the government iS dragging itS feet. At the rate, it is going. it will be another fifty years before the government realizes that a pro-business policy is the best pro-people policy By then, of course, the world would have moved even further ahead.
The example of the Korean Cielo has been presented to highlight..
विकल्प
India's lack of stature in the international market
India's poor performance in the international market
India's lack of creditability in the international market
India's disrepute in the international market
Advertisements
उत्तर
India's poor performance in the international market
APPEARS IN
संबंधित प्रश्न
Direction : The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.
It is a matter of life or death: that’s a concept that gets our attention, whether chuckling over it in a B-grade film or engrossed by it in an A-grade medical book such as this year’s Pulitzer Prize winner for nonfiction, The Emperor of All Maladies: A Biography of Cancer by Siddhartha Mukherjee. It isn’t hyperbole to call Emperor a literary masterpiece. The Pulitzer citation describes it as, “an elegant inquiry, at once clinical and personal, into the long history of an insidious disease that, despite treatment breakthroughs, still bedevils medical science.” “Elegant” is an apposite description of the New York-based oncologist’s prose, whether he is rephrasing Tolstoy: “Normal cells are identically normal; malignant cells become unhappily malignant in unique ways”; or explaining the book’s provocative title: “This book is a ‘biography’ in the truest sense of the word – an attempt to enter the mind of this immortal illness, to understand its personality, to demystify its behaviour”; or extrapolating, from cancer’s ability to mutate, into the realm of philosophy: “If we, as a species, are the ultimate product of Darwinian selection, then so, too, is this incredible disease that lurks inside us.” Mukherjee weaves together multiple stories about medical advances, doctors and scientists, and the patients who teach us something in the living or dying. Emperor is a historical account of cancer; we understand how cancer rose to prominence as a leading cause of death – as a direct result of human beings living longer now, and more likely to develop cancer. A greater understanding of the disease however comes with the caveat, the more you
know, the more aware you are of how much you don’t know. Tales related to surgery, with its inherent drama, has the edge on our medical reading lists. Some medical books fall into the Self Help category — one of the most successful genres in the publishing world today. While the genre can attract those looking to make a quick buck by peddling to people’s insecurities, there are some useful tomes too. Author Tim Parks in Teach Us to Sit Still shares how reading a famous self-help book, A Headache in the Pelvis helped with his chronic pelvic pain syndrome. Medical books deal with a subject close to our hearts — us, we, ourselves. Perhaps the ones we are most drawn to – thrillers aside – are those that give us a deeper insight into how the mind-body machine works, why we are sick, how we can get better — and, unhappily, sometimes, why we can’t.
Which of the following statements is the author most likely to agree with?
Read the passage and answer the question based on it.
Management education gained new academic stature within US Universities and greater respect from outside during the 1960 and 1970s. Some observers attribute the competitive superiority of US corporations to the quality of business education. In1978, a management professor, Herbert A. Simon of Carnegie Mellon University, won the Nobel Prize in economics for his work in decision theory. And the popularity of business education continued to grow, since 1960, the number of master’s degrees awarded annually has grown from under 5000 to over 50,000 in the mid-1980’s as the MBA has become known as ‘the passport to the good life’.
By the 1980s, however, US business schools faced critics who charged that learning had little relevance to real business problems. Some went so far as to blame business schools for the decline in US competitiveness.
Amidst the criticisms, four distinct arguments may be discerned. The first is that business schools must be either unnecessary or deleterious because Japan does so well without them. Underlying this argument is the idea that management ability cannot be taught, one is either born with it or must acquire it over years of practical experience. A second argument is that business schools are overly academic and theoretical. They teach quantitative models that have little application to real-world problems. Third, they give inadequate attention to shop floor issues, production processes and to management resources. Finally, it is argued that they encourage undesirable attitudes in students, such as placing value on the short term and ‘bottom line’ targets, while neglecting longer-term development criteria. In summary, some business executives complain that MBA’s are incapable of handling day to day operational decisions, unable to communicate and to motivate people, and unwilling to accept responsibility for following through on implementation plans. We shall analyze these criticisms after having reviewed experiences in other countries.
In contrast to the expansion and development of business education in the United States and more recently in Europe, Japanese business schools graduate no more than two hundred MBA’s each year. The Keio Business School (KBS) was the only graduate school of management in the entire country until the mid-1970s and it still boasts the only two-year master's programme. The absence of business schools in Japan would appear in contradiction with the high priority placed upon learning by its Confucian culture. Confucian colleges taught administrative skills as early as 1630 and Japan wholeheartedly accepted Western learning following the Meiji restoration of 1868 when hundreds of students were dispatched to universities in US, Germany, England, and France to learn the secrets of Western technology and modernization. Moreover, the Japanese educational system is highly developed and intensely competitive and can be credited for raising the literary and mathematical abilities of the Japanese to the highest level in the world.
Until recently, Japan corporations have not been interested in using either local or foreign business schools for the development of their future executives. Their in-company training programs have sought the socialization of newcomers, the younger the better. The training is highly specific and those who receive it have neither the capacity nor the incentive to quit. The prevailing belief, says Imai, ‘is management should be born out of the experience and many years of effort and not learnt from educational institutions.’ A 1960 survey of Japanese senior executives confirmed that a majority (54%) believed that managerial capabilities can be attained only on the job and not in universities.
However, this view seems to be changing: the same survey revealed that even as early as 1960, 37% of senior executives felt that the universities should teach integrated professional management. In the 1980’s a combination of increased competitive pressures and greater multi-nationalization of Japanese business are making it difficult for many companies to rely solely on uponinternally trained managers. This has led to rapid growth of local business programmes and greater use of American MBA programmes. In 1982-83, the Japanese comprised the largest single group of foreign students at Wharton, where they not only learnt the latest techniques of financial analysis but also developed worldwide contacts through their classmates and became Americanized, something highly useful in future negotiations. The Japanese, then do not ‘do without’ business schools, as is sometimes contended. But the process of selecting and orienting new graduates, even MBA’s, into corporations is radically different than in the US. Rather than being placed in highly paying staff positions, new Japanese recruits are assigned responsibility for operational and even menial tasks. Success is based upon Japan’s system of highly competitive recruitment and intensive in-company management development, which in turn are grounded in its tradition of universal and rigorous academic education, life-long employment and strong group identification.
The harmony among these traditional elements has made the Japanese industry highly productive and given corporate leadership a long term view. It is true that this has been achieved without much attention to university business education, but extraordinary attention has been devoted to the development of managerial skills, both within the company and through participation in programmes sponsored by the Productivity Center and other similar organizations.
The following reasons were responsible for the growth of popularity of business schools among students except
Read the passage and answer the question based on it.
Management education gained new academic stature within US Universities and greater respect from outside during the 1960 and 1970s. Some observers attribute the competitive superiority of US corporations to the quality of business education. In1978, a management professor, Herbert A. Simon of Carnegie Mellon University, won the Nobel Prize in economics for his work in decision theory. And the popularity of business education continued to grow, since 1960, the number of master’s degrees awarded annually has grown from under 5000 to over 50,000 in the mid-1980s as the MBA has become known as ‘the passport to the good life’.
By the 1980s, however, US business schools faced critics who charged that learning had little relevance to real business problems. Some went so far as to blame business schools for the decline in US competitiveness.
Amidst the criticisms, four distinct arguments may be discerned. The first is that business schools must be either unnecessary or deleterious because Japan does so well without them. Underlying this argument is the idea that management ability cannot be taught, one is either born with it or must acquire it over years of practical experience. A second argument is that business schools are overly academic and theoretical. They teach quantitative models that have little application to real-world problems. Third, they give inadequate attention to shop floor issues, production processes and to management resources. Finally, it is argued that they encourage undesirable attitudes in students, such as placing value on the short term and ‘bottom line’ targets, while neglecting longer-term development criteria. In summary, some business executives complain that MBA’s are incapable of handling day to day operational decisions, unable to communicate and to motivate people, and unwilling to accept responsibility for following through on implementation plans. We shall analyze these criticisms after having reviewed experiences in other countries.
In contrast to the expansion and development of business education in the United States and more recently in Europe, Japanese business schools graduate no more than two hundred MBA’s each year. The Keio Business School (KBS) was the only graduate school of management in the entire country until the mid-1970s and it still boasts the only two-year master's programme. The absence of business schools in Japan would appear in contradiction with the high priority placed upon learning by its Confucian culture. Confucian colleges taught administrative skills as early as 1630 and Japan wholeheartedly accepted Western learning following the Meiji restoration of 1868 when hundreds of students were dispatched to universities in US, Germany, England, and France to learn the secrets of Western technology and modernization. Moreover, the Japanese educational system is highly developed and intensely competitive and can be credited for raising the literary and mathematical abilities of the Japanese to the highest level in the world.
Until recently, Japan corporations have not been interested in using either local or foreign business schools for the development of their future executives. Their in-company training programs have sought the socialization of newcomers, the younger the better. The training is highly specific and those who receive it have neither the capacity nor the incentive to quit. The prevailing belief, says Imai, ‘is management should be born out of the experience and many years of effort and not learnt from educational institutions.’ A 1960 survey of Japanese senior executives confirmed that a majority (54%) believed that managerial capabilities can be attained only on the job and not in universities.
However, this view seems to be changing: the same survey revealed that even as early as 1960, 37% of senior executives felt that the universities should teach integrated professional management. In the 1980s a combination of increased competitive pressures and greater multi-nationalization of Japanese business are making it difficult for many companies to rely solely on upon internally trained managers. This has led to the rapid growth of local business programmes and greater use of American MBA programmes. In 1982-83, the Japanese comprised the largest single group of foreign students at Wharton, where they not only learnt the latest techniques of financial analysis but also developed worldwide contacts through their classmates and became Americanized, something highly useful in future negotiations. The Japanese, then do not ‘do without’ business schools, as is sometimes contended. But the process of selecting and orienting new graduates, even MBA’s, into corporations is radically different than in the US. Rather than being placed in highly paying staff positions, new Japanese recruits are assigned responsibility for operational and even menial tasks. Success is based upon Japan’s system of highly competitive recruitment and intensive in-company management development, which in turn are grounded in its tradition of universal and rigorous academic education, life-long employment and strong group identification.
The harmony among these traditional elements has made the Japanese industry highly productive and given corporate leadership a long term view. It is true that this has been achieved without much attention to university business education, but extraordinary attention has been devoted to the development of managerial skills, both within the company and through participation in programmes sponsored by the Productivity Center and other similar organizations.
The 1960s and 1970s can best be described as a period
The old woman didn’t like the look or sound of the kid. She scowled at her husband. ‘Where did you pick up this kitten from? Why do we need her?’ When the old man told her she was a goat kid, she picked her up and exclaimed in amazement: ‘Yes, she is a goat kid!’
All night, they went over the story of how the kid had come into their hands.
That same night the old lady gave the goat kid that resembled a kitten a nickname: Poonachi. She once had a cat by the same name. In memory of that beloved cat, this goat kid too was named Poonachi. They had acquired her without spending a penny. Now they had to look after her somehow. Her husband had told her a vague story about meeting a demon who looked like Bakasuran and receiving the kid from him as a gift. She wondered if he could have stolen it from a goatherd. Someone might come looking for it tomorrow. Maybe her husband had told her the story only to cover up his crime?
The old woman was not used to lighting lamps at night. The couple ate their evening meal and went to bed when it was still dusk. That night, though, she took a large earthen lamp and filled it with castor oil extracted the year before. There was no cotton for a wick. She tore off a strip from a discarded loincloth of her husband’s and fashioned it into a wick.
She looked at the kid under the lamplight in that shed as though she were seeing her own child after a long time. There was no bald spot or bruise anywhere on her body. The kid was all black. As she stared at the lamp, her wide-open eyes were starkly visible. There was a trace of fatigue on her face. The old woman thought the kid looked haggard because she had not been fed properly. She must be just a couple of days old. A determination that she must somehow raise this kid to adulthood took root in her heart.
She called the old man to come and see the kid. She looked like a black lump glittering in the lamplight in that pitch-black night. He pulled fondly at her flapping ears and said, ‘Aren’t you lucky to come and live here?’
It had been a long time since there was such pleasant chit-chat between the couple. Because of the kid’s sudden entry into their lives, they ended up talking a while about the old days.
[Extracted, with edits and revisions, from Poonachi, or the Story of a Black Goat, by Perumal Murugan, translated by N. Kalyan Raman, Context, 2018.]
What can we infer from the passage about why the old couple talked about the old days that night?
Read the passage and answer the question based on it.
Civilization is basically a vital kind of grouping. Without civilizations, the world as we know it would not be. Civilizations have different qualities than regular groups of people such as nomads. For example, a civilization develops surpluses of things which helps the people be a stable community. These surpluses also create the construction and growth of cities and help develop secure, formal states. The government is also present in civilizations. One very important part of a civilization is an advanced writing method. A civilization can only be complete with all of these factors, or it will just fall apart. Nomads are nowhere close to being a civilization even though sometimes groups of nomads have good technology. The words 'culture' and 'civilization' have been often used synonymously, though they have clearly defined meanings differentiating them. 'Civilization' means the betterment of ways of living, making Nature bend to fulfill the needs of humankind. It includes also organizing societies into politically well-defined groups working collectively for improved conditions of life in matters of food, dress, communication, and so on. Thus a group considers itself as civilized, while others were looked down upon as barbarians. This has led to wars and holocausts, resulting in the mass destruction of human beings. What are the good parts of our civilization? First and foremost there are order and safety. If today I have a quarrel with another man, I do not get beaten merely because I am physically weaker and he can kick me down. I go to law, and the law will decide as fairly as it can between the two of us. Thus in disputes between man and man right has taken the place of might. Moreover, the law protects me from robbery and violence. Nobody may come and break into my house, steal my goods or run off with my children. Of course, there are burglars, but they are very rare, and the law punishes them whenever it catches them. It is difficult for us to realize how much this safety means. Without safety, these higher activities of mankind which make up civilization could not go on. The inventor could not invent, the scientist find out or the artist make beautiful things. Hence, order and safety, although they are not themselves civilization are things without which civilization would be impossible. They are as necessary to our civilization as the air we breathe is to us, and we have grown so used to them that we do not notice them any more than we notice the air. Another great achievement of our civilization is that today civilized men are largely free from the fear of pain. They still fall ill, but illness is no longer the terrible thing it used to be... Not only do men and women enjoy better health; they live longer than they ever did before, and they have a much better chance of growing up... Thirdly, our civilization is more secure than any that have gone before it. This is because it is much more widely spread... Previous civilizations were specialized and limited, they were like oases in a desert.
What according to the author has the freedom from the fear of pain led to?
Paragraph: In the 16th century, an age of great marine and terrestrial exploration, Ferdinand Magellan led the first expedition to sail around the world. As a young Portuguese noble, he served the king of Portugal, but he became involved in the quagmire of political intrigue at court and lost the king's favor. After he was dismissed from service by the king of Portugal, he offered to serve the future Emperor Charles V of Spain.
A papal decree of 1493 had assigned all land in the New World west of 50 degrees W longitude to Spain and all the land east of that line to Portugal. Magellan offered to prove that the East Indies fell under Spanish authority. On September 20, 1519, Magellan set sail from Spain with five ships. More than a year later, one of these ships was exploring the topography of South America in search of a water route across the continent. This ship sank, but the remaining four ships searched along the southern peninsula of South America. Finally they found the passage they sought near 50 degrees S latitude. Magellan named this passage the Strait of All Saints, but today it is known as the Strait of Magellan.
One ship deserted while in this passage and returned to Spain, so fewer sailors were privileged to gaze at that first panorama of the Pacific Ocean. Those who remained crossed the meridian now known as the International Date Line in the early spring of 1521 after 98 days on the Pacific Ocean. During those long days at sea, many of Magellan's men died of starvation and disease.
Later, Magellan became involved in an insular conflict in the Philippines and was killed in a tribal battle. Only one ship and 17 sailors under the command of the Basque navigator Elcano survived to complete the westward journey to Spain and thus prove once and for all that the world is round, with no precipice at the edge.
The Pope divided New World lands between Spain and Portugal according to their location on one side or the other of an imaginary geographical line 50 degrees west of Greenwich that extends in a _________ direction.
Read the following passage carefully and answer the question:
Antigone was one of the daughters of Oedipus, that tragic figure of male power who had been cursed by Gods for mistakenly his father and subsequently marrying his mother and assuming the throne of Thebes. After the death of Oedipus, civil war broke out and a battle was waged in front of the seventh gate of Thebes his two sons led opposing factions and at the height of the battle fought and killed each other. Oedipus brother Creon, uncle of Antigone, was now undisputed master of the city. Creon resolved to make an example of the brother who had fought against him, Polynices, by refusing the right of honourable burial. The penalty of death was promulgated against any who would defy this order.
Antigone was distraught. Polynices had been left unburied, unwept, a feast of flesh for keen eyed carrion birds. Antigone asks her sister Ismene, for it was a challenge to her royal blood. Now it is time to show whether or not you are worthy of your royal blood is be 'not my brother and yours? Whether you like it or not? I shall never desert him-never. But Simone responds, “How could you dare-when Creon has expressly forbidden it? Antigone, we are women, it is not for us to fight against men". With a touch of bitterness, Antigone releases her sister from the obligation to help her. but argues she cannot shrug off the burden. "if I die for it what happiness! Live,..if you will live, and defy the holiest of laws of heaven".
What is your opinion, would have been the logical end of the story?
Read the given passage carefully and attempt the question that follow.
The work which Gandhiji had taken up was not only regarding the achievement of political freedom but also the establishment of a new social order based on truth and nonviolence, unity and peace, equality and universal brotherhood and maximum freedom for all. This unfinished part of his experiment was perhaps even more difficult to achieve than the achievement of political freedom. In the political struggle, the fight was against a foreign power and all one could do was either join it or wish it success and give it his/her moral support. In establishing a social order on this pattern, there was a strong possibility of a conflict arising between diverse groups and classes of our own people. Experience shows that man values his possessions even more than his life because in the former he sees the means for perpetuation and survival of his descendants even after his body is reduced to ashes. A new order cannot be established without radically changing the mind and attitude of men towards property and, at some stage or the other, the ‘haves’ have to yield place to the ‘have-nots’. We have seen, in our time, attempts to achieve a kind of egalitarian society and the picture of it after it was achieved. But this was done, by and large, through the use of physical force.
In the ultimate analysis it is difficult, if not impossible, to say that the instinct to possess has been rooted out or that it will not reappear in an even worse form under a different guise. It may even be that like a gas kept confined within containers under great pressure, or water held back by a big dam, once the barrier breaks, the reaction will one day sweep back with a violence equal in extent and intensity to what was used to establish and maintain the outward egalitarian form. This enforced egalitarianism contains, in its bosom, the seed of its own destruction.
The root cause of class conflict is possessiveness or the acquisitive instinct. So long as the ideal that is to be achieved is one of securing the maximum material satisfaction, possessiveness is neither suppressed nor eliminated but grows on what it feeds. Nor does it cease to be possessiveness, whether it is confined to only a few or is shared by many.
If egalitarianism is to endure, it has to be based not on the possession of the maximum material goods by a few or by all but on voluntary, enlightened renunciation of those goods which cannot be shared by others or can be enjoyed only at the expense of others. This calls for substitution of material values by purely spiritual ones. The paradise of material satisfaction, which is sometimes equated with progress these days, neither spells peace nor progress. Mahatma Gandhi has shown us how the acquisitive instinct inherent in man can be transmuted by the adoption of the ideal of trusteeship by those who ‘have’ for the benefit of all those who ‘have not’ so that, instead of leading to exploitation and conflict, it would become a means and incentive for the amelioration and progress of society respectively.
Which of the following statements is ’not true’ in the context of the passage?
Read the given passages and answer the question with the help of information provided in the passage.
Rural development in India has witnessed several changes over the years in its emphasis, approaches, strategies and programmes. It has assumed a new dimension and perspectives as a consequence. Rural development can be richer and more meaningful only through the participation of the clienteles of development. Just as implementation is the touchstone for planning, people's participation is the centre-piece in rural development.
People's participation is one of the foremost pre-requisites of development process both from procedural and philosophical perspectives. For the development planners and administrators, it is important to solicit the participation of different groups of rural people, to make the plans participatory.
Rural development aims at improving rural people's livelihoods in an equitable and sustainable manner, both socially and environmentally, through better access to assets and services and control over productive capital. The basic objectives of Rural Development Programmes have been alleviation of poverty and unemployment through creation of basic social and economic infrastructure, provision of training to rural unemployed youth and providing employment to marginal farmers/labourers to discourage seasonal and permanent migration to urban areas.
Rural development is the main pillar of our nation's development. In spite of rapid urbanisation, a large section of our population still lives in the villages. Secondly. rural India has Jagged behind in development because of many historical sectors. Though the 11th plan began in very behavioural circumstances with the economy has grown at the rate of 7.7% per year in the 10th plan period, there still existed a big challenge to correct the development imbalances and to accord due priority to development in rural areas.
Ministry of Rural Development is implementing a number of programmes aimed at sustainable holistic development in rural areas. The thrust of these programmes is on all-round economic and social transformation in rural areas, though a multi-pronged strategy aiming to reach out to the most disadvantaged sections of the society.
Although concrete efforts have been initiated by the Government of India through several plans and measures to alleviate poverty in rural India, there still remains much more to be done to bring prosperity in the lives of the people in rural areas. At present, technology dissemination is uneven and slow In rural areas.
As per the passage, the basic objective of Rural Development Programmes have been alleviation of poverty and through the creation of basic social and economic __________.
Read the given passages and answer the question with the help of the information provided in the passage.
A large number of branches of banks have been set-up in the villages. The main purpose of setting up these banks is to develop the habit of saving among the villagers and also to give loans to farmers for boosting production in one way or the other. So, banks had been concentrated in the bigger cities and Indian villagers had no faith in them.
The new banks also intend to re-channel bank credit -from the big industries to the small sectors. With the intention of promoting rural banking, regional rural banks were established. These aligned the local field with rural problems. These banks are not to replace the other credit-giving bodies but to supplement them.
The Steering Committee of the Regional Rural Banks considered some structural changes. First of all, they gave thought to the staffing spectrum, then to effective coordination among banks rural cooperatives and commercial and the possibility of bringing credit within the access to weaker sections. They wanted to recruit staff for the rural banks at lower salaries. But, this type of discrimination would have been unfruitful. So, it was given up.
A problem with regard to the rural banks is the creditworthiness of the poor. The Indian farmers are so poor that they cannot pay back their loans. The rural Indian surveys make it quite clear that practically rural farmers have no creditworthiness. Their socio-economic mobility is almost zero. That is why banks fear that their credit will never be paid back.
Another difficulty for the rural banks is that loans cannot be processed so easily. Processing loans also entails heavy expenditure. This was also going to affect their financial position. Still, the establishment of the rural banks was decided because the social advantages were more important than the commercial consideration.
Rural banks definitely encourage savings. No doubt the villagers do not have to pay income tax and they get many other concessions, yet their saving is not significant. Despite all the hurdles, the rural banking system will boost up the economy of villages and thereby the economy of the country.
Which of the following is possibly the most appropriate title for the passage?
