Volume : V, Issue : III, March - 2015

THE ROLE OF REGIONAL RURAL BANKS FOR RURAL DEVELOPMENT IN INDIA

Mrs. N. Santhi, Dr. T. R. Ganesan

Abstract :

The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural laborers’, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . The institution of Regional Rural Banks (RRBs) was created to meet the excess demand for institutional credit in the rural areas, particularly among the economically and socially marginalized sections. In order to provide access to low–cost banking facilities to the poor, the Narasimham Working Group (1975) proposed the establishment of a new set of banks, as institutions which "combine the local feel and the familiarity with rural problems which the cooperatives possess and the degree of business organization, ability to mobilize deposits, access to central money markets and modernized outlook which the commercial banks have". The multi–agency approach to rural credit was also to sub serve the needs of the input–intensive agricultural strategy (Green Revolution) which had initially focused on `betting on the strong’ but by the midseventies was ready to spread more widely through the Indian countryside. In addition, the potential and the need for diversification of economic activities in the rural areas had begun to be recognized, and this was a sector where the RRBs could play a meaningful role. In this paper we are going to discuss on the role of regional rural banks and their responsibilities towards rural development.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mrs. N.Santhi, Dr.T.R.Ganesan THE ROLE OF REGIONAL RURAL BANKS FOR RURAL DEVELOPMENT IN INDIA Indian Journal of Applied Research, Vol.5, Issue : 3 March 2015

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