43475267-rural-india_2015_rukoo

8/9/2019 43475267-Rural-India_2015_rukoo

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RURAL INDIA

Since India is agriculture oriented country, the importance of rural banks in India is

more than any other countries. The development of rural co-operative banks in India

is on the process but still it is not fully developed.

According to the census of India village with clear surveyed boundaries not having a

municipality, corporation or board, with density of population not more than 4s!.km and

with at least "# per cent of the male working population engaged in agriculture and allied

activities would !uality as rural. According to this definition, there are $.%&, villages in

the country. 'f these, only .# cent has a population above (, and ) per cent have

population between #, and (,. Around # per cent has a population less than ).

Interestingly, for *+ and consumer durable companies, any territory that has more than

), and #, population, respectively, is rural market. So, for them, it is not rural

India which is rural. According to them, it is the class-II and III towns that are rural.

According to the census of India )(, there are more than 4, towns in the country. It

has classified them into si categories-around 4 class-I towns with one lakh and above

population /these are further classified into %# metros and rest non-metros0, 41& class-II

towns with #,-11,111 population, (,%$& class-III towns with ),-#, population,

(,#$ class-I2 towns with (,-(1,111 population. It is mainly the class-II and III towns

that marketer3s term as rural and that partly eplains their enthusiasm about the so-called

immense potential of rural India.

Demographic details of Indian Rural Markets:

About ) million live in urban India whereas "4) million reside in rural areas ")5 of

India3s population resides in its $, )", villages.

The number of middle income and high income households in rural Indian is epected to

grow from 4$ million to #1 million.

(


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Si6e of rural market is estimated to be 4) million households and rural market has been

growing at five times the pace of the urban market.

+ore government rural development initiates.

7ow literacy rate

Increasing agricultural productivity leading to growth of rural disposable income.

7owering of difference between taste of urban and rural customer

89':7;+S '* T I>?IA

The burden of indebtedness in rural India is great, and falls mainly on the households of rural

working people. The eploitation of this group in the credit market is one of the most

pervasive and persistent features of rural life in India, and despite ma@or structural changes in

credit institutions and forms of rural credit in the post-Independence period, ?arling3s

statement /(1)#0, that the Indian peasant is born in debt, lives in debt and be!ueaths debt,

still remains true for the great ma@ority of working households in the countryside. 9ural

households need credit for a variety of reasons. They need it to meet short-term re!uirements

for working capital and for long-term investment in agriculture and other income-bearing

activities. Agricultural and non-agricultural activity in rural areas are typically seasonal, and

households need credit to smooth out seasonal fluctuations in earnings and ependiture. 9ural

households, particularly those vulnerable to what appear to others to be minor shocks with

respect to income and ependiture, need credit as an insurance against risk. In a society that

has no free, compulsory and universal education or health care, and very few general social

security programmes rural households need credit for different types of consumption. These

include ependiture on food, housing, health and education. In the Indian contet, another

important purpose of borrowing is to meet epenses for a variety of social obligations and

rituals.

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Introduction

About "#5 of the Indian population lives in rural areas and about &5 of this population is

dependent on agriculture for its livelihood. Agriculture accounts for about %"5 of the

national income. The development of the rural areas and of agriculture and its allied activities

thus becomes vital for the rapid development of the economy as a whole..In this regard, India

has succeeded in developing one of the largest rural banking systems in the world. 2arious

regulatory measures have been taken enabling the banking system to play an important role in

the economic development of the rural areas. The two most prominent measures are rural

commercial bank branch epansion, thus moving from class banking to mass banking and

secondly, priority sector lending and the formulation of specific development programmeS

and action plans to facilitate credit flow to the rural sectors. ?espite these measures, as per

the ?ebt and Investment Survey, ovt. of India /(11)0 about %$5 of the rural households are

found to be outside the fold of institutional credit.

Agricultural Productivity

;ven though India occupies the first or second position in the world in several crops in terms

of area and production, it3s rank in terms of productivity per hectare in the world is #) for

rice, %& for wheat and much low in several other crops. The productivity of some crops is not

only low but also remained stagnant over the years. The yield gap needs to be bridged

through an integrated package of technology and agricultural policies to reap the untapped

production potential, particularly, in rain-fed and other low productivity areas.

%


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INDIA! M"!# P"$%R&UL RURAL %N#R%PR%N%UR!

'( MAN!U)*+*AI ,A-ANI

+ansukhbhai Bagani developed a motorcycle-based tractor for India3s poor farmers, which is

both cost effective - costing roughly C %(&, and fuel efficient /it can plow an acre of land in

% minutes with two liters of fuel0.

After 4-# years of eperiments, +ansukhbhai developed an attachment for a motorbike -- a

multi-purpose tool bar -- in (114. This could be

attached to any %)#cc motorcycle by replacing

the rear wheel with an assembly unit.

The 3super plough3 called :ullet Santi /a

cultivator that pulveri6es or smoothens the soil

is locally called as santi0, can carry out various

farming activities like furrow opening, sowing,

inter-culturing and spraying operations.

.( MAN!U)*+*AI PA#%L

A farmer, +ansukhbhai 8atel invented a cotton stripping machine that has significantly cut

the cost of cotton farming and revolutionised India3s cotton industry.

8atel who studied up to lass D, invented a cotton-

stripping machine in (11(.

8atel3s machine helps in in removing cotton from semi

opened and unopened shells of various cotton

varieties. The machine has won a =nited States

patent.

/( MAN!U)*+*AI PRA,APA#I

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+ansukhbhai 8ra@apati, a potter, invented a clay non-stick pan that costs 9s ( and a clay

refrigerator that runs without electricity for those who cannot afford a fridge or their

electricity and maintenance costs.

?uring the )( earth!uake, all earthen pots were broken.

Some people told me the poor people3s refrigerators are

broken. They referred to the 3matkas3/pots0 as refrigerators.

It struck me then that I must try to make a fridge for those

who cannot afford to buy a fridge, says 8ra@apati.

The patent winning +itticool has been the most challenging

product for him. It needed a lot of eperimenting.


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1( MADANLAL )UMA$A#

+adanlal Eumawat, a grassroots innovator with no

more than a fourth-grade education, developed a

fuel-efficient, multi-crop thresher that yields

cleaner grains, which can be bagged directly and

eliminates the cost of cleaning.

The modified thresher reduces setup time to less

than (# minutes to switch over from one crop to

another. Its latest variant can also handle

groundnuts apart from threshing other cereals and

pulses.

2( 3*IN#A)INDI MALL%!*AM

3hintakindi Mallesham, is the inventor of the 7ami Asu +achine, that ignited a

revolution in India3s weaving community.

+allesham3s machine can make si saris

worth of material in one day, and no

human effort is re!uired beyond placing

thread on the machine and removing the

material after the process is

complete.Feavers making the traditional

3Tie G ?ye3 8ochampalli silk sarees used to

undergo a painstaking process, moving

their hands thousands of times in a day

while weaving sarees. :ut not any more.

Thanks to +allesham3s patented device to mechanise this process, hundreds of weavers in

Andhra 8radesh now spend less time on making a variety of designs.

4( )I!*"R% +I5ANI

$


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>et on the list is *uture roup chairman Eishore :iyani . alled the 3Sam Falton of India3 ,

:iyani3s company operates about three million s!uare feet of retail space in )# Indian cities.

6( AN!*U -UP#A

Social entrepreneur Anshu upta who founded ''>B, a system that transfers used clothing

and household goods from India3s rich to its poorest communities, also featured on the

Forbes list.

upta collects % tonnes of cloth every month and distributes it across ) states.


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*or villagers, this cheap and eco-friendly model of generating electricity is a miracle that has

transformed their lives. >o wonder yanesh 8andey, the %%-year-old >on-9esident Indian

has won the hearts of many poor villagers. "Aap Bhagwan ho /you are odH0!" said a poor

villager to yanesh 8andey, when he first saw his house lit up.

After relin!uishing a successful career in the =nited States, yanesh returned to his native

home state in )". A mind-altering 2ipasana session reaffirmed his desire to come back to

:ihar.


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&I9% %N#R%PR%N%UR! "&&%RIN- INN"9A#I9% !"LU#I"N! IN RURAL

INDIA

'( %9"M" Research Advancement ; A


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/( i)ure #echsoft

+ased in: Eolkata

$hat it does: Sets up rural health centres

#arget Revenue: 9s ( crore this year

&unding: 9s 4# lakhs from Intellecap Impact and alcutta Angels, 9s " 7akh from

F;:;7

Eolkata-based iEure Techsoft has built a network of rural health centres where doctors are

available through the week and pharmacists dispense only accredited medicines. In addition

the company has built a back-end software platform on which all health records are stored.

This is used to centrally monitor key metrics such as doctors3 attendance, treatment

prescribed and pharmacy stock management.

Su@ay Santra, iEure3s founder said the idea for the business came to him when he realised that

his relatives and friends in a Fest :engal village could not relate to his work at a =S

technology firm. I was not doing anything which would impact them directly, said Santra,

%$, who left 'racle to launch his healthcare venture.

0( Aakar Innovations

+ased in: >ew ?elhi

$hat it does: :uilds low-cost machines that produce sanitary napkins

U!P: The napkins are biodegradable

#arget revenue: 9s $ lakh this year

&unding: 9s $.(# lakh loan from the >I* 9s %.$ lakh +ahindra 3Spark the 9ise3 grant

1( nanoPi>

+ased in:


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Thirty-si-year-old Sasisekar Erish makes image and video processing products for

agriculture and healthcare at his company nano8i based in Earnataka3s


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3hallenges faced


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"33UPA#I"N "& #*% P%"PL% IN RURAL INDIA

?ifferent kinds of occupation in Indian villages reflect the base of their socio-economic

culture. Since the ancient period, the Indian villagers have been involved in variousoccupations out of which, agriculture is the principal one. Apart from agriculture, the

villagers are also involved in other occupations like fishing, farming, cottage industry,

pottery, business, various small, medium or large scale industries, carpentry, etc. In the

contemporary period, the evolution and advancement in different industrial and technological

sectors in India have opened new @ob opportunities for the Indian villagers

Agriculture, however, remains the principal occupation in Indian villages from the ancient

period. The climatic conditions in most parts of India are suitable for agricultural activities

(%


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and hence, India has become one of the leading producers of agricultural products in the

world. In the changing time agriculture has been replaced by other occupations in different

parts of India in the contemporary period. 'ther occupation in Indian villages includes the

priests, carpenters, blacksmiths, barbers, weavers, potters, oil pressers, leatherworkers,

sweepers, water bearers, toddy-tappers and many others.

adu, Earnataka, etc. have taken fishing as

the main source of income. This is mainly because of the coastal location of the states.


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Another ma@or occupation in Indian villages is the cottage industry. ottage industry has

emerged as a ma@or source of employment in Indian villages over the period of time. +any

villagers are involved in various kinds of art and crafts works. The villagers produce different

types of handicrafts products and many of them are earning their livelihoods by marketing

them. The occupations like artisan in pottery, wood, cloth, metal and leather have been in

eistence in Indian villages, since the ancient period and are found even in the modern times.

+any Indian villagers are dependent on these occupations to earn their livelihoods.

The women in the rural areas, too are actively getting involved in different industries like

matchbo and firework industries, :idi making, agate and slate industries, coffee and tea

industries, brick industry, construction industry, electronics industry, spice industries,Tourism

sector has emerged as one of the ma@or occupations in Indian villages, in the contemporary

period. 2illages in most parts of India are endowed with natural beauty and have a rich

tradition and cultural heritage. The rich cultural diversity in the villages attracts many tourists

from all over the world every year. This has encouraged many villagers to get involved in

various tourism related occupations. The villagers work as tourist guides or run different

kinds of business in the famous tourist spots or even provide accommodation.

The occupation scenario in Indian villages has changed mainly due to the changing

economical scenario of the villages of India. The invention of new technologies has

encouraged the Indian villagers to take up new occupations. Apart from that, decline in the

fertility of lands in many villages has also forced many villagers to give up their traditional

occupation of agriculture. +any of these villagers have moved to the nearby urban areas in

search for alternative occupation.

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+ihar

+adhya :ihar armin :ank

:ihar Eshetriya ramin :ank

=ttar :ihar Eshetriya ramin :ank

Eosi Eshetriya ramin :ank

Samastipur Eshetriya ramin :ank

-uarat

?ena u@arat ramin :ank

:aroda u@arat ramin :ank

Saurashtra ramin :ank KK..etc

($

ISS=;S I> 9=9A7 ?;2;7'8+;>T

List of Rural +anks in India


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R%A!"N! &"R UNPR"&I#A+L% "& RURAL +AN)IN- IN INDIA

*igh Non;performing Loans BNPLC:

:anks have higher non-performing loans in rural areas because rural households have

irregular income and ependiture patterns. The issue is compounded by the dependence of the

rural economy on monsoons, and loan waivers driven by political agendas. >87s from the

agriculture sector are "."5, compared to %.#5 across non-agriculture sectors&. In order for

banks to view rural India as a growth opportunity, rather than a regulatory re!uirement, a

combination of these issues must be addressed. Increasing financial access to rural areas is

contingent upon basic conditions such as proper infrastructure and an enabling regulatory

framework, as well as innovative thinking on the part of commercial banks. Access issues,

however, eplain only one part of the problem. =sage is an e!ually important issue for rural

customers.

Lo? #icket !ie:

The average ticket si6e of both a deposit transaction and a credit transaction in rural areas is

small. This means that banks need more customers per branch or channel to break even.onsidering the small catchments area of a branch in rural areas, generating a customer base

with critical mass is challenging.

*igh cost to serve:

:ranches are the most used channel in rural areas. This is because many rural people are not

literate and are not comfortable using technology-driven channels such as AT+s, phone

banking or internet banking. 'n the other hand, a branch is an epensive channel for banks

/*ollowing Table0. In addition, rural people, whenever they have access to banks, have

fre!uent low ticket and cash-based transactions, which increase the overall transaction cost

for their bank.

*igher risk of credit:

9ural households may have highly irregular and volatile income streams. Irregular wage

labor and the sale of agricultural products are the two main sources of income for rural

("


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households. The poor rural households /landless and marginal farmers0 are particularly

dependent on irregular wage employment. 9ural households also have irregular ependiture

patterns. The typical ependiture profile of rural households is small, with daily or irregular

epenses incurred through the month. *urthermore, a ma@ority of households incur at least

one unscheduled ependiture per year, with the most fre!uent reasons being medical or social

emergency". In short, the rural customer is generally considered to be a risky one

+AN)! "PR%RA#IN- IN RURAL INDIA

RURAL 3";"P%RA#I9% +AN)!

o-operative banks, another component of Indian banking system, originated with the

enactment of the co-operative credit societies Act of (14, which provided for the formation

of co-operative credit societies. =nder the Act of (14, a number of co-operative credit

societies were started.

o-operative banks were established in India to facilities rural credit, and to cater to the needs

of small farmers and businessmen. They were popular with middle and lower income groups

because of the high interest rates they offered as compared to commercial banks


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o-operative banks are an important segment of the organi6ed sector of the Indian banking

system. They have been organi6ed under the provision of the co-operative societyLs law of the

states. They have grown with the specific purpose of financing agriculture and other

economic units in the unorgani6ed sector of the economy.

:oth commercial banks and co-operative bank perform the main banking functions of deposit

mobili6ation, supply of credit, and provision of remittance facilities. The ma@or beneficiary,

in the case of commercial bank, is industry, trade and commerce whereas co-operative bank

have been concern with agricultural finance.

3";"P%RA#I9% M"9%M%N# IN INDIA

o-operation occupies an important place in the Indian economy.

8erhaps no other country in the world is the co-operative movement as large and as diverse as

it is India. There is almost no sector left untouched by the co-operative movement. The main

areas of operation of co-operatives in India are as under.

Agricultural redit

(1


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Agricultural +arketing

Agricultural 8rocessing

Industrial co-operatives

=rban credit o-operatives

o-operative movement in India is the result of a deliberate policy of the state and is

vigorously pursued through formation of an elaborate governing infrastructure. The

successive *ive-year plans looked upon the co-operation movement as the balancing sector

between public sector and the private sector.

And the success is evident. Almost # percent of the total sugar production in India is

contributed by sugar co-operatives and over $ percent of the total fertili6er distribution in

the country is handled by the co-operatives. The consumer co-operatives are slowly becoming

the backbone of the public distribution system and the marketing co-operatives are handling

agricultural produce with an astounding growth rate.

*urther there is the Indian *armers *ertili6er o-operative 7T? /I**'0, which has been

successful in setting up an effective marketing network in most of the states for selling

modern farming technology instead of fertili6ers alone. The operations of I**' are handled

through its more than %, member co-operatives.

The >ational Agricultural o-operative +arketing *ederation />A*;?0 has over #

marketing societies. These societies operate at the local wholesale market level and handle

agricultural produce. Thus the farmers have a market for their produce right at their door-step

In India we find that the states of +aharashtra and u@arat are well developed. Fhereas the

states of Andhra 8radesh, 9a@asthan and Earnataka have shown remarkable progress in the

co-operative movement and there is a vast potential for the development of co-operative in

the remaining states.

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PRIN3IPL%! &"LL"$%D +5 3";"P +AN)!

There have been also other principles like the principles of political neutrality, correct weight

and measures, purity of goods and thrift which were also taken into consideration.

These principles have been reformulated recently by the +anchester ongress in (11# and

now the principles of co-operation are as followsJ

I Principle: 9oluntary and "pen Mem


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9 Principle: 3o;operation among 3o;operatives:

o-operatives serve their members most effectively and strengthen the co-operative

movement by working together through local, regional, national and international structures.

9I Principle: 3oncern for 3ommunity. o-

operatives work for the sustainable development of their communities through policies

approved by their members. The seventh 8rinciple was added at the +anchester ongress of

(11#.

"+,%3#I9%! "& 3";"P%RA#I9% +AN)!

(0 To understand the structural features of the credit delivery system in a village,

)0 To assess the operational dynamics of financial services rendered by formal credit

institutions especially the co-operative,

%0 To analy6e the profile of borrowers of Service $operative :ank, their economic

empowerment and perception level regarding loan repayment, and

40 To identify reasons for non-viability of rural credit institutions and suggest measures.

#0 The rural financial system in the country calls for a strong and efficient credit delivery

system, capable of taking care of the epanding and diverse credit needs of agriculture and

rural development. +ore than #5 of the rural credit is disbursed by the o-operative :anks

and 9egional 9ural :anks. In this direction >A:A9? has been taking various initiatives in

association with overnment of India and 9:I to improve the health of o-operative banks

$0 To provide cheap and liberal credit facilities to small and marginal farmers, agriculture

laborers, artisans, small entrepreneurs and other weaker section.

"0 To save the rural poor from the money lenders.

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&0 To act as a catalyst element and thereby accelerate the economic growth in the particular

region.

10 To cultivate the banking habits among the rural people and mobili6ed savings for the

economic development of rural areas.

DI&&%R%N3% +%#$%%N RURAL 3";"P%RA#I9% +AN)! RR+s

8'I>TS

9=9A7

''8;9ATI2; :A>ES

99:s

AIM!:

99:s have been established to

supplement the resources of the

co-operative banks and not to

complete with them. The

principle of co-operation is Mall

for each and each for allN. Its

aim is to provide an institutional

framework to organi6ed Oself

helpL among persons of small

means. Its basis is self-help

through mutual help. It

combines economic, social and

political ob@ectives

.

8roviding credit and other

facilities especially to the

small and marginal farmers,

agricultural laborers,

artisans and small

entrepreneurs in the rural

areas.

A3#

APPLI3A+L%:

o-operative societies Act (1$#.

9egional 9ural :anks Act

(1"$, 9:I Act, >A:A9?

Act,

)%


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!#A#U!: The co-operative banks do not

become scheduled banks

automatically.

Fhereas 99:s are

scheduled commercial

banks. The scheduled status

given automatically.

AR%A "&

"P%RA#I"N:

o-operative banks are

restricted to only one district

only.

:ut the area of operation of

99:s is etending up to

one or more districts of a

state.

3"9%RA-% "&

P"PULA#I"N!:


voluntary organi6ation for

masses.

99:s are specially class of

rural area. It includes small

and marginal farmers,

agricultural laborers,

artisans and small

entrepreneurs in the rural

areas.

M"NI#"RIN- AND

3"N#R"L:


controlled by 9:I and 9egistrar

of co- operatives.

The 99:s are controlled by

the entral overnment,

9:I, State overnment and

Sponsor :anks

)4


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&UN3#I"N "& 3";"P%RA#I9% +AN)

>A:A9? being an Ape ?evelopment :ank promotes agriculture and rural development

through refinance support to all banks for investment credit and to o-operative and 99:s

for production credit. The ob@ective of providing refinance to eligible institutions is to

supplement their resources for delivering credit for agriculture, cottage and village industries,

SSIs, rural artisans, etc. thus influencing the !uantum of lending in consonance with the

policy of the government of India. It directs the policy, planning and operational aspects in

the field of credit for agriculture and integrated rural development.

:esides the refinancing activity it discharges the developmental functions which are as underJ

(0 It co-ordinates the operation of rural credit institutions

)0 It ensures institution building to improve absorptive capacity of credit delivery system.

%0 It develops epertise to deal with agriculture and rural problems

40 It assists ovt., 9:I and other institutions in rural development.

#0 It provides facilities for training, research and dissemination of information in rural

banking.

$0 It assists the State overnment to enable them to contribute to the share capital of eligible

institutions

"0 =nder 9ural Infrastructure ?evelopment *und, >A:A9? etends financial assistance to

State ovt. for completion of various incomplete rural pro@ects such as Irrigation, 9ural

:ridges, and 9oads and new pro@ects also.

&0 It undertakes inspection of o-operative :anks and 99:s as a part of 9egulatory

function.

)#


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)$


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#*% !3*%M%! "& RURAL 3";"P%RA#I9% +AN) I#s PR"-R%!!

The overnment while understanding the importance of co-operatives has introduced several

schemes for promoting the spirit of co-operation. :oth the Indian overnment as well as the

overnment of the State of +aharashtra has introduced several schemes for the co-

operatives. A few of them are listed here. Take benefit of them.

!cheme ': !hare 3apital 3ontri


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). *inancial Assistance for Tools and ;!uipment3s

%. Interest Subsidy for Forking capitalJ

The government gives an interest subsidy up to %.#5 to 4.#5 on the amount borrowed by the

co-operative. This scheme helps to reduce the burden of interest on the co-operative society

which is to be paid to financial agencies.

)&


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"pportunity to the %ntrepreneurs

3"MP%#A#"R! "& RURAL +AN)IN- IN INDIA(

Fhat is >A:A9?P

>ational :ank for Agriculture G 9ural ?evelopment

>A:A9? is an ape institution accredited with all matters concerning policy,

planning and operations in the field of credit for agriculture and other economic activities in

rural areas.

>A:A9? is established as a development :ank, in terms of the 8reamble of the Act, for

providing and regulating redit and other facilities for the promotion and development of

agriculture, small scale industries, cottage and village industries, handicrafts and other rural

crafts and other allied economic activities in rural areas with a view to promoting integrated

rural development and securing prosperity of rural areas and for matters connected therewith

or incidental thereto

The >ational :ank for Agriculture G 9ural ?evelopment />A:A9?0 J was setup by an act

of (1&(. The ob@ective of the :ank was to provide credit for promotion of Agriculture, small-

scale Industry, cottage and village industries, handicrafts and other rural crafts and other

allied economic activities in rural area with a view to promote integrated rural development

and to secure prosperity of rural area and for matters connected therewith or incidental

thereto.

>A:A9? is set up as an ape ?evelopment :ank with a mandate for facilitating credit flow

for promotion and development of agriculture, small-scale industries, cottage and village

industries, handicrafts and other rural crafts. It also has the mandate to support all other allied

economic activities in rural areas, promote integrated and sustainable rural development and

secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity

>A:A9? is entrusted with 8roviding refinance to lending institutions in rural areas :ringing

about or promoting institutional development and ;valuating, monitoring and inspecting the

)1


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client banks :esides this pivotal role, >A:A9? alsoJ Acts as a coordinator in the operations

of rural credit institutions

PR"M"#I"NAL R"L% of NA+ARD

8romotion of 9>*S has been recogni6ed as an important and necessary ad@unct to the

refinancing function. The ob@ective of promotional programmes is to establish replicable

models for generatingQenhancing opportunities for employment and income generation in

rural areas in a sustainable, demonstrative and cost effective manner by providing

grantQrevolving fund assistance etc., to >'s,2oluntary Associations/2As0, Trusts and other

8romotional 'rgani6ations. And trained around (,#(, rural youth with grant assistance of

9s. ((.1( crore

A:A9? like J

(. Swaro@gar credit card schemes

). *armerLs club programme

%. Self help groups

4. Eissan credit card schemes

#. +any more

'( Development and Promotional &unctions

redit is a critical factor in development of agriculture and rural sector as it enables

investment in capital formation and technological upgradation. A:A9? as a

thrust area. 2arious initiatives have been taken to strengthen the cooperative credit structure

and the regional rural banks, so that ade!uate and timely credit is made available to the

needy.

%


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.(!?arogar 3redit 3ard B!33C !chme

The S Scheme formulated by >A:A9? in consultation with 9:I and oI envisages

ade!uate and timely credit, both working capital and block capital, to small artisans,

handloom weavers, service providers, fishermen, self-employed persons, rickshaw owners

and other micro entrepreneurs, in rural and urban areas in a fleible, hassle free and cost

effective manner from the banking system. The facility also includes a reasonable component

for consumption needs. As on %( +arch )4, )&,1)# cards were issued by :s, oop :anks

and 99:s involving credit limit of 9s. $4.)$ crore

%(


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/( &armersE 3lu< Programme

$hat are &armersE 3luA:A9? for the mutual

benefit of the banks concerned and rural people.

%)


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$hat is &armersE 3lu< Programme F

>ational :ank for Agriculture and 9ural ?evelopment />A:A9?0 encourages banks

to promote *armers3 lubs in rural areas under the *armersL lub 8rogramme, earlier known

as M2ikas 2olunteer 2ahini /2220 8rogrammeN. The 8rogramme was launched by >A:A9?

in >ovember (1&) to propagate the five principles of M?evelopment through reditN.

Mission : ?evelopment in rural areas through credit, technology transfer, awareness and

capacity building.

Mem


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Self help groups comprise homogenous groups of poor people who have voluntarily come

together mainly with the idea of overcoming their financial difficulties. S


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As a pioneering credit delivery innovation, Eisan redit ard Scheme aims at provision of

ade!uate and timely support from the banking system to the farmers for their cultivation

needs including purchase of inputs in a fleible and cost effective manner.

Since launching in August (11&, around ).%& crore Eisan redit ards issued upto %( +arch

)) by ooperative :anks, 9egional 9ural :anks and ommercial :anks put together.

Scheme implemented in all States and =nion Territories /ecept handigarh, ?aman G ?iu

and ?adra G >agar


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3onclusionJ

Thus for the development of rural areas it is necessary for the above prime issues to be

resolved.

Fithout the changes taking place in the economy it is not possible

Also there are other factors which are responsible for holding back the development but

the main underlined issues must be resolved first.

:ecause if nothing is done to improve the conditions and people keep migrating to urban

areas thinking about the privileges and lifestyle then it is difficult for development to take

place.

+oreover there will be no longer eistence of rural villages which is the heart of the Indian

economy.

43475267-rural-india_2015_rukoo

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