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VOL. 10, ISSUE 5 (2024)
Impact of banking on rural society
Authors
Dr. Atul N Patil, Ramesh Pawara
Abstract
The concept of Rural Credit is in fact the most prevalent phenomenon in
the banking business in the country. Rural Credit was considered as a problem
by many bankers in the pre-socialisation of banking in the country and even now
the bankers feel so. The country being pre-dominantly rural based and depending
on agriculture sector for a long time for its economic development, rural
banking became inevitable. As the well-established commercial banks were
reluctant to lend to the farmers, particularly to the small and medium farmers,
the Government took the initiative of lending through its own arrangement and
also by sponsoring co-operatives as early as 1890s and in the beginning of 20th
century. The Indian agricultural sector is the main source of employment
in India. Near about 70% employment is provided by agricultural and
agriculture-related businesses. The Indian agricultural sector contributed in
GDP nearly 17% in the FY 2014-15. Every business organisation needs working
capital as well as that of agricultural sector. Farmers also need credit
facility which is provided by different financial sources. It includes
commercial banks, co-operative banks, money lenders and government etc. If
farmers get proper credit facility in appropriate time, it directly affects the
quality of product. For the production, farmer needs four basic inputs- land,
water, manpower and cash.
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Pages:21-23
How to cite this article:
Dr. Atul N Patil, Ramesh Pawara "Impact of banking on rural society". International Journal of Commerce and Management Research, Vol 10, Issue 5, 2024, Pages 21-23
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