Scribd Logo
Upload

Welcome to Scribd!

  • 9 views

    Rural Finance Unit 3

    Uploaded by

    Master VINAY
    BBA Retail Rural Management

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content

    You might also like

    Rural Finance Unit 3

    Uploaded by

    Master VINAY
    9 views16 pages
    BBA Retail Rural Management

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    BBA Retail Rural Management

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    9 views16 pages

    Rural Finance Unit 3

    Uploaded by

    Master VINAY
    BBA Retail Rural Management

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 16
    RURAL FINANCE Rusa fisance in conte! of ra Fnacing may be defined s Me provess of providing and creating the credit faulty as desired by rou masses engaged in gears nd other related activites. Toe poe ofr oance fo enable the ral poor people to meet out their nancial needs for taking up the agHellra activites velwed to the agricultural production. The rural financing in Inia i chiratrigdl by some specific features, which are purely ‘eoncerned wth the very fame wok of ral financing existing ia India 1) Low eos subsidized financing a pint esis the nal mass, sition of rural Finacing plik & plas meant for 2) Rural financing through © resting ofthe financial nos 3) Rol financing through exeroal aswell as internal sures of fiance the rural Faancng is primarily provided through the two major sures to prform the funtion coral finance comprising of frm & informal sourees of fiance, Sources of ral financing Ieconsss of two primary sources that re formal soure& nfm source of ral financing Fon Source xing which provide eet aces to thera borowers “They consist of such source of aan an the basis of some ltisltion or the ats by vite of which they have een established te. iti one which is organized in teri of fis stustare as well as is functioning It consists of commercial banks, rsionalraral banks & the o-opeative society Informal Sources “They ar that sures of rua innsing wherein herr ert or ral ance is provided on individual basis out of the sources which have been erated by them at their own Le informs individual by Weir own out of the rescures erated by them. The informal souees are source consists of all such ert fciities oF the financial faites ereted by classified as- BT cranes NO Saree ) Rural nasi series 1) Non-uatfmeingorvisss oral fisancing serves: Thee mt proved y te lnvibal KES 8th bomowes for facing sh activites whi are primarily concerned ih apraare & it related operon financing services wre proviso th wis ofthe indvil neds on pion DS ‘Nomura fn: They do provide he eet met ot the ivi borrowers ter than he needs th cll Goancing The infra sources 40cm 2 landlords slfhlp groups & individ! genie he Mans othe Sabo ‘Meri and drei of hfs informal sures fa fiance sof the ‘A Fons sources 1. provides subsidized ules omg basis 2. It provides Jons to mest out the divenifed needs of ral bore consisting oF ‘both he ural fans atvitis a well as non-rralHaning ative 3. Ingrovides rr crit fora valle pete of ime Le. sort tem, meso te & long-term finances. 4. Itprovides ual rit aes on prio Bsis as py ise Demesits 1. ‘The rural credits ais feed ough formal source of ual nance generally involves the comicx lea! frais o be filed by ral BORROWERS which in tum makes the foal sure eas acesiblef ral nance 2. The formal source of Raa francng do Inc i teens ofthe avail ie lack of rural financial infact t9 save the Inger masses of rural population ie. less umber of rural branches opting in rales making he formal source of Rural financing least performed by the ral boowes 5, Formal souress do adopt he standdized norms polices for providing the Rural financing icles only for redefined purposes, whieh in tim make the formal sources of Rural financing t be les propriate to seve the diversified credit neds rua borers in lia, a ‘BBM-306 RURAL MANGEMENT ARVIND BANGER zs Ee eg Meris 1. The ani fifo sss fa fase igri aro Be ra se fc one nota be by al owt 2, ‘The ces extended by infra ue fl fumes xed ote bs of Colleagues yt rl Bomowe erin th rm of ances ‘alae sets uy indi ao 1 Borower assole! for purse of etaininé 3. The cris offered by infonal sources o rural finance penerally cover the loans oF mewn ut the nivale of ral bowers Demis 1. ‘The credits offered by informal sures of ral ance generally have the small mounts covered under iL. oy ined amount avalable for boring 2 ‘igh interest ents are charged hy the fenders from tat of ral borrowers, wie ako the Financing more cola compared tote tours. 2. These lick ceiablty Le. they ae Teast rede ae compared to other sources of Sines. Problems and Prospects: ‘These emg fom the very nature the characteris of url poputon pevating in India, Almost 2 rural finance bit halenging tsk to be tine trough the rral loaning insite ofthe population of Inia do esi in al ras which in tur makes the prevailing in India Present senario of ral acing in nie 1. Nov-bahing financial companies 2. Cooperative seit. 3, Commercial harks 4, Regional ral banks. Agricultural ret rset Population served though rural branch t-can broadly be stated as the problem of serving the Ivpe population with the scare infrastrcture of providing the rural rei faites wo the eal mases. The purpose ofr mance i 10 sty te 0 diferent financial needs Ofte mal meses Le raduton related needs & consumption related nec EE /BBM-306 RURAL MANGEMENT ARVIND BANGER ee he problem concerned with ual financing Broadly classi into te xe |. Population served ‘The exguusion of barking services 4 mal areas is an in such # man! maximum of ul population served tough i. The ppuaion serve as» CET of rut fnance i Inia the problem of esr branches of comercial Dh tne 2 sched of + at operating inthe rl ses. AS pr the provision Ind down unde the RBI As 1934 a the resmmendaon ofthe various sommes fonned by RB ‘ring reforms in banking str of India. One ofthe recommendation do suas Ht a least one rural rach of commercial Bank shuld exist over 8 popu of 1c a mace probe fod by the commer banks operating i nia in pov 98 rural rei tthe ral population. The high tami ost s due the lack ofr ces, the cost of dipensing the eet is genealy higher a compared 1 the ocr sours of ra fiance Hi al aed by the poor commision & Information ecologies te to rete the rural financing inastructre 10 serve the Other misceltancos problems: ‘These ae those, wish adversely fest the perfomance of ral fecal nstions in providing eal ce fits tothe rr population These robles ar: 1. Lack ofl cot dispersion melas to seve the Ive url population ie, the dapat of cdi 1 rua mass & afeted by complen legal formalities to be ley the ral borrowers which um makes the rua soit es acest them hough rr ani nstiion. 1. The problsn of credit deposit rato. to be maintained by ral finance instuton o provide ral cre to herr mass. The ted posit aio is variably determine the RBI 1 be minaned by the commercial operating in nia IHL The poor performance of public sect banks ia Rural banking is, anstisfietory perfonmance in dispersing the agricuual rei to rural masses, HERB 00m ance non ance = ic init IV The faire of enmei umhs nseving eral acne oe 0 MEE to cape up with the demand for al erat ncaa ares © 6S ‘naa ees of he ral Borrowers opel. = Ea ‘atopy the central goto ata conomedevelopnet. Vi tatblahment of NABARD in 1950 as an apex april stint seve the aed fo rl re i ni jvelapnet ‘abt wa else on 1 Ape 193 by RBA 1954-Te esa amework aE the nea ncn in Indice copie Fit so poison ey down wnt

    You might also like