हिंदी

Critically Evaluate the Role of the Rural Banking System in the Process of Rural Development in India. - Economics

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प्रश्न

Critically evaluate the role of the rural banking system in the process of rural development in India.

संक्षेप में उत्तर

उत्तर

With the nationalisation of commercial banks after 1969, the concept of social banking came into existence. It implies extending institutional credit at a moderate rate of interest. The National Bank for Agricultural and Rural Development (NABARD) has made significant progress in the field of rural credit. It cannot be denied that institutional credit has freed the farmers from the trap of money lenders and Mahajans. But, on the other hand, institutional credit is not free from deficiencies. Rural or institutional credit has invariably been associated with security or collateral. Consequently, a substantial number of farmers cannot avail of credit. Also, the commercial banks failed to encourage the habit of thrift among farmers. In addition to this, the leniency on the part of the government to collect taxes was another setback in rural banking. This further led to the emergence of the feeling among the farmers of not repaying the borrowed amount. This increased the defaulter’s rate and led to financial unfeasibility for the rural banks.

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अध्याय 6: Rural Development - Exercise [पृष्ठ ११४]

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एनसीईआरटी Economics - Indian Economic Development [English] Class 12
अध्याय 6 Rural Development
Exercise | Q 6 | पृष्ठ ११४

संबंधित प्रश्न

Discuss the importance of credit in rural development.


Which of the following is an institutional source of rural credit?


Which source of credit had emerged to fully integrate the formal credit system into the overall rural social and community development?


Which one of the following is not a non-institutional source of credit?


Which of the following falls under unorganized sector?


National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the ____________ body to coordinate the activities of all institutions involved in the rural financing system.


Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:

Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.

Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.


Which is the apex institute at the national level which provides re-finance facilities to institutions engaged in providing rural credit?


What is the importance of self-help groups (SHGS) in rural areas?


What are the steps taken by the government in developing rural markets?


Discuss briefly the importance of micro-credit programmes in rural development.


______ have emerged as an important micro finance system and led to women empowerment.


Micro credit programmes play a vital role in ensuring an overall development of the rural economy as they ______.

  1. provide financial support
  2. lead to women empowerment
  3. enhance the reach of formal credit system

State and elaborate whether the following statement is true or false, with valid arguments:

Jan-Dhan Yojana has been a crucial step for financial resource mobilization in the Indian economy.


______ is the apex institution which plans and evaluates policies related to rural credit needs.


Explain the importance of credit availability to farmers in rural development. 


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