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 smallestscale 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
NABARD
United Bank of India
Syndicate 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.

 MicroFinance
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