Rural Banking

Published on January 2019 | Categories: Documents | Downloads: 8 | Comments: 0 | Views: 293
of 19
Download PDF   Embed   Report

Comments

Content

RURAL BANKING

S

“ The The

future lies with those companies who see the poor as their customers” 

~C.K.Prahalad 

WHAT IS RURAL BANKING ?

It is a form of services that provide solution to the financial needs of the consumers in Rural areas.

Objectives Of Banking Services In Rural Areas  Poverty Alleviation Objectives:

The objectives is to uplift the mass of   population residing in the rural areas who are currently below the poverty line by extending credit to the smallest-scale economic activity. activity.

Financial Intermediation Objectives: The approach involves increasing the accessibility of banking services to the poor in a commercially sustainable manner.

EVALUATION OF THE RURAL BANKING AFTER INDEPENDENCE



Pre-Nationalization Pre-Nationalization period 

The presence of banking sector was very limited.



In 1951 informal credit accounted 70% of rural rur al lending and less than 1% of rural rur al household debt came from commercial bank.



Nationalization of banks 

14 Largest Indian commercial banks were nationalized in 1969.



The central aim was to provide the t he banking services to all sections of society.

Business of a rural bank   The

granting of loans and advances,  particularly to small and marginal farmers and agricultural laborers, whether individual or in groups and to co-operatives societies

 The

granting of loans and advances,  particularly to artisans, small entrepreneurs and persons of small means

Initiatives for rural banking development



Haryana State Cooperative Apex Bank Limited

 NABARD 

United Bank of India



Syndicate Bank 



Co-operative bank 

ESTABLISHMENT OF NABARD

 National

Bank Bank for Agricultural and Rural Development was established in July 1982.



The main aim was to provide credit facilities to the farmers through co-operatives & regional rural banks.

They were responsible for all matters concerning  policy , planning & operations in the field of  credit for agricultural & other economic activities in the rural areas.



Objectives Of regional rural banks 

Bridging the credit gap in rural areas.



Check the outflow of rural deposits to urban areas.



Reduce regional imbalances and increase rural employment generation

Role of rbi in rural credit



Micro – Finance Finance



Kisan Credit Card



Agricultural Insurance



Marketing of Mutual Fund Units

challenges in marketing of banking services in rural market

Lack of adequate financial market. Low value of loans for poor sections. Lack of collateral.

 Low density of population.  Underdevelopment Underdevelopment of rural infrastructure.  Lack of financial discipline.  Rural interest subsidy

OPPORTUNITIES



Sourcing of agricultural produce from India for  global markets.



Govt. thrust.



Increasing corporate interest in agri-business.



Strengthening loan recovery.



Lower level of Non-Performing Assets (NPA) in rural areas.



Lower cost of labour , infrastructure & cost of  living.



Large untapped market.

MARKETING STRATEGIES

S

Developmental marketing.

S

Variable lending rate.

S  New

product lines & delivery models.

S

Development of low priced customized ATMs.

S

ATM enabled kisan credit card.

MARKETING STRATEGIES contd….



Co-operative promotion.



Developing franchise model.



Partnership with NGOs for financing.



Simple and accessible loan procedure.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close