CAPSTONE PROJECT ON RURAL BANKING IN INDIA AND IT’S FUTURE SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE MASTER'S DEGREE IN BUSINESS ADMINISTRATION OF CHANDIGARH UNIVERSITY, GHARUAN, MOHALI Supervised by: Submitted by: Ir. Parveen Kumar Abrol Name: Anamika Sankhwar : Assistant Professor UID: 21MBA1646 CHANDIGARH UNIVERSITY, GHARUAN, MOHALI BATCH 2021-2023INTRODUCTIO! ur nation is supported by its villages. India is a country with a big rural population that engages in agriculture and its related activities on a larger scale, These activities revenue accounts for a larger portion of India's GDP. It is well recognised that the banking system is the engine driving the growth of any nation’s economy and will always be the deciding factor in the fiercely competitive global economic world. They are growing, producing profitably, and have good quality assets. Prior to the introduction of cooperative banking, which was intended to strengthen the rural credit mechanism, this sector was similarly unable to meet the financial needs of the rural areas. This insufficient scenario prompted the Indian government to establish a committee to identify workable solutions to enable simple mechanisms for rural credit satisfaction, Regional Rural Banks were recommended to be established by the committee led by Shri. M. Narasimhan in 1975. The regional rural bank in India is particularly concemed with providing credit to rural residents. Regional Rural Banks of India meets the financial needs of rural residents for their agricultural and agro -based ‘businesses, and as a result, they make money from their banking activity to fund their operations. In this project, I have focused mainly on the future of Rural Banking in India and also highlighted on several other information and issues.ABSTRACT In India, the rural sector employs more than 70% of the workforce. There are certain people who cannot access banking services in rural locations. To ensure that people in rural India may access the financial system, India has created a multi-layered approach. In an effort to restructure the weaker and poorer segments of rural society, the Reserve Bank of India and the Indian government have adopted the initiative of financial inclusion. Since the country independence, the decision-makers have understood the necessity and significance of banking services nationwide, There are some studies, such as the "All India Rural Credit Survey" and "All India Rural Credit Review," that have made it possible for commercial banks to expand into rural areas and offer their banking services to a significant number of people there. Ithas been discovered that there is an increase in demand for rural finaneing for infrastructure investment, production, farming, and consumer as well. Commercial banks’ assistance made rural banking exceedingly simple and accessible. Commercial banks encounter a number of difficulties when providing banking services in rural areas, including high transaction costs, a lack of infrastructure, employee resistance, a large number of accounts with very low balances, and security issues when carrying and transmitting cash using mobile banking in some far locations. In 1904, during British administration, cooperative banks established themselves in India, In 1935, during India's British administration, the Reserve Bank of India was also established. Although though commercial banking dates back to before our nation gained its independence, the "All India Rural Credit Survey" (1954) marks the beginning of serious attempts to develop rural banking. The "All India Rural Credit Review," completed in 1969, presented the idea of social banking for commercial banking as a result of the nationalisation of major banks in this series. Banking grew simpler as a result of the information technology and communication’s rapid growth and enhancement. Significant improvements in the process for land mortgage loans and other bank borrowings are also significant components to the banking company's achievements. Consumers are faced with the problem of bribe and other concems since there is more focus placed on a significant paperwork load and because it demands numerous, repeated trips to the bank branches. The cost of transactions to acquire loans from banks for farmers and rural residents is increased as a result of all these problems. This problem has all the indicators of being an unfinished result of improper authorisation of mandates to the booked business banks and RRBs in rearranging tactics. Disentangling systems and simplicity in credit distribution require special consideration in the context where banks are entrusted with the responsibility of providing credit guidance to the growing network. A few issues that have emerged as a result of a few investigations have also been presented. As it tums out, interest rates on credit have increased in the provincial territories, for both creation and usage purposes. Rural banking is becoming a desirable proposition for commercial banks.