A Study on the Problems of Rural Finance and its Distribution for the Balanced Agricultural Development

Mrs.P.Menakadevi; Dr.M.Latha Natarajan

Volume : IV, Issue : VIII, August - 2015

A Study on the Problems of Rural Finance and its Distribution for the Balanced Agricultural Development

Mrs. P. Menakadevi, Dr. M. Latha Natarajan

Abstract :

The financial system or the financial sector of any country consists of Specialized and Non–specialized financial institutions, Organized and Unorganized financial markets and financial instruments and services which facilitate transfer of funds. Similarly the procedures and practices adopted in the markets, and financial interrelationships are also parts of the financial system. But these procedures and practices adopted in the financial system has a huge impact on the transfer of funds from the supply side to the demand side. To be precise, these financial systems are not always mutually exclusive. This complex procedures and practices adopted in the financial system have been severely affectedby the flow of funds especially it hinders the rural finance and agricultural development. This paper tries to address such inbuilt problems of our financial system and its impact on the distribution of the rural finance for the balanced agriculture development.