RURAL INDEBTEDNESS IN INDIA

NEELESH CHANDRA
18212
GROUP NO. 22
 What is rural indebtedness?

 Poverty is perhaps a major cause for rural indebtedness. The low level of rural incomes, the

uncertain and primitive farming of small landholdings makes it impossible to meet the needs

required for their living. Often, the rural people take debts to meet these needs.
 CAUSES:

Poverty

Ancestral/Inherited Debt

Social and Religious Needs

Litigation

Backwardness of Agriculture

Excessive Burden of Land Revenue and Rent

Defective Money Lending System
Farmer’s Distress:

Deterioration of agriculture

 Low standard of health

Economic Consequences

Social Consequences

Political Consequences
Relief and Rehabilition

1. (a) Removing the need for borrowing

(b) Protecting the assets of the agriculturists from passing into the hands of moneylenders
(c) Regulation of the activities of moneylenders
2. Nationalisation of Commercial Banks
3. Regional Rural Banks
4. Twenty-Point Economic Programme
5. Co-operative Credit Institutions
6. Report of the Sivaram Committee
7. National Bank for Agriculture and Rural Development
4. Twenty-Point Economic Programme
5. Co-operative Credit Institutions
6. Report of the Sivaram Committee
7. National Bank for Agriculture and Rural Development
Suggestions:

The problem of rural indebtedness is linked with the larger issue of rural poverty.
Poverty alleviation measures have to be taken up on a war footing to augment the
income of the ruralites. Mobilisation of local, social and economic resources, an
equitable distribution of benefits of new agricultural strategy and establishment of a
good number of co-operatives and commercial banks will go a long way in mitigating
the magnitude of rural indebtedness from the rural social matrix.
THANK YOU