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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
Discuss the importance of credit in rural development.
Explain the role of microcredit in meeting credit requirements of the poor.
When was the National Bank for Agricultural and Rural Development set up?
Which source of credit had emerged to fully integrate the formal credit system into the overall rural social and community development?
The problems faced in rural banking are ______.
The scheme of microfinance is extended through ______.
Which one of the following is not a non-institutional source of credit?
Which of the following falls under unorganized sector?
14 major commercial banks were nationalised in ______.
National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the ____________ body to coordinate the activities of all institutions involved in the rural financing system.
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.
What are the steps taken by the government in developing rural markets?
Identify which of the following is a source of non-institutional credit in the rural areas of India.
______ have emerged as an important micro finance system and led to women empowerment.
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.
______ is the apex institution which plans and evaluates policies related to rural credit needs.
Explain the importance of credit availability to farmers in rural development.
