RURAL BANKING IN INDIA

Submitted in partial fulfilment of the requirements for the award of degree

Of

MBA
In

FINANCIAL MANAGEMENT

Submitted By:

VARUN TRICHAL
511227243

DEPARTMENT OF MANAGEMENT

SIKKIM MANIPAL UNIVERSITY

SIKKIM

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 DECLARATION

I hereby declare that the project entitled “Rural Banking in India” which is being submitted
in partial fulfilment of the requirement for the award of the Degree of Master in Business
Administration to “SIKKIM MANIPAL UNIVERSITY, SIKKIM” is an authentic record of our
own work done under the guidance of Mr.Atul Dubey, Department of Management, SIKKIM
MANIPAL UNIVERSITY, SIKKIM.

The matter reported in this project has not been submitted earlier for the award of any other
degree.

Mr. Atul Dubey Varun Trichal

HOD OF DEPARTMENT STUDENT NAME

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 ACKNOWLEDGEMENT

I sincerely express indebtedness to esteemed and revered guide “Ms. Deepti Tarani”, for her
invaluable guidance, supervision and encouragement throughout the work. Without her kind
patronage and guidance, the project would not have taken shape.

I take this opportunity to express deep sense of gratitude to “Mr. Atul Dubey”, Head of
Management Studies, for his encouragement and kind approval. We would like to express
our sincere regards to him for advice and counseling from time to time.

I owe sincere thanks to all the lecturers in “Rural Banking in India” for their advice and
counseling time to time.

Varun Trichal

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 BONAFIDE CERTIFICATE

Certified that this Project Report titled “Rural Banking in India” is

the Bonafied work Of “Varun Trichal” who carried out the
project work under my supervision.

SIGNATURE:
SIGNATURE:

HEAD OF THE DEPARTMENT FACULTY

IN CHARGE

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 ABSTRACT

Summary of Project

Rural banking in India has been the subject of study Survey Committee Report in
1954, literally thousands of reports have examined and investigated the
problems relating to the credit delivery for agriculture and rural area. Latest
magnum opus on the subject is the National Agricultural Credit Review report
2000. The Expert Committee on Rural Credit (Chairman: Professor V.S.Vyas)
submitted its report in 2002.One more High Power Committee headed by
Professor Vyas set up by the Reserve Bank of India recently to review and advice
on improving credit delivery to agriculture has also given its report.

Financial liberalization after 1991 decimated the

formal system of institutional credit in rural India. It represented a clear and
explicit reversal of the policy of social and development banking, such as it was,
and contributed in no small way to the extreme deprivation and distress of which
the rural poor in India have been victims over the last decade.

Rural credit has been a laboratory for

various policies, initiatives, investigations and improvements since 1955.The first
major strategy adopted for improving rural credit delivery was the
institutionalization of the credit delivery system with the cooperative as the
primary channels.

Various approaches have been adopted for

improving rural credit from time to time. It was felt that project lending will
revolutionize rural credit. This was followed by area approach and extension-
based schemes and then the lead bank scheme providing for forward and
backward linkages and the scheme of linking banks to Primary Agricultural Credit
Societies and the linkage of bank to microfinance institutions.

To echo the thoughts of C.K. Prahalad, the “bottom of the pyramid”

segments will be the growth drivers of the future – this is certainly being