761500_634299080599295000

PRESENTED BY ANUPAMA MUKHERJEE

ARCHISHA GARG

It is a form of banking service that provide solution to the financial needs of the consumers in Rural areas

Poverty Alleviation Objectives:The objectives is to uplift the mass of population residing in the rural areas who are currently below the poverty line by extending credit to the smallest-scale economic activity.

Financial Intermediation Objectives:The approach involves increasing the accessibility of banking services to the poor in a commercially sustainable manner.

The granting of loans and advances, particularly to small and marginal farmers and agricultural laborers, whether individual or in groups and to co-operatives societies

The granting of loans and advances, particularly to artisans, small entrepreneurs and persons of small means

Haryana State Cooperative Apex Bank Limited

NABARDUnited Bank of IndiaSyndicate Bank Co-operative bank 

The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs).

Government passed the Regional Rural Banks Act, 1976.

The main objective of RRBs is to provide credit and other facilities to the small and marginal farmers, agricultural labourers and small entrepreneurs and develop agriculture, trade, commerce, industry and other productive activities in the rural areas.

Bridging the credit gap in rural areas. Check the outflow of rural deposits to

urban areas. Reduce regional imbalances and

increase rural employment generation

National Bank for Agricultural and Rural Development was established in July 1982.

The main aim was to provide credit facilities to the farmers through co-operatives & regional rural banks.

They were responsible for all matters concerning policy , planning & operations in the field of credit for agricultural & other economic activities in the rural areas.

Pre-Nationalization period The presence of banking sector was very limited. In 1951 informal credit accounted 70% of rural

lending and less than 1% of rural household debt came from commercial bank.

Nationalization of banks 14 Largest Indian commercial banks were

nationalized in 1969. The central aim was to provide the banking services

to all sections of society.

Micro–Finance Kisan Credit Card Agricultural Insurance Marketing of Mutual Fund Units

Mobile banking is not only helping the government to take a step forward towards fulfilling its aim of having one bank account for every household, but also saving it crores of rupees by way of reduced transaction costs.

While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out, mobile banking helps it reduce the cost to a mere Rs 2.

The mobile acts as a branch of the bank by storing a database of customers. It has a smartcard, which biometrically stores the identity of the customer such as name, address, photograph and relevant details of the savings or loan accounts held by the issuing bank.

Customers get a secure electronic identity via phone or smartcard, while agents take deposits and dispense cash.

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Lack of adequate financial market.Low value of loans for poor sections.Lack of collateral.Low density of population.Underdevelopment of rural infrastructure.Lack of financial discipline.Rural interest subsidy