With the advent of the banking sector in India, Rural banking also came into existence. During the initial days, the Rural banks only focused on the agricultural sector but today these banks are getting into all corners of the country to help in the growth of the rural sector in every possible way.
Some of the banks which function for the growth and development of the Indian rural areas are:
- State Bank of India
- Sindhanur Urban Souharda Co-operative Bank
- United Bank of India
- NABARD
- Syndicate Bank
- Haryana State Cooperative Apex Bank Limited
- Co-operative bank
Some of the main objectives of rural banks are as follows:
- These banks provide cheap credit facilities to small traders, farmers, small entrepreneurs, artisans and so on.
- They save the rural people from the clutches of the moneylenders.
- They enhance economic growth of a particular region by acting as a catalyst.
- These banks help in developing banking habits among the rural population.
- They help in encouraging commerce and trade activities in rural areas and hence, help in increasing employment opportunities.
- They also encourage entrepreneurship in such areas.
- They also aim at eliminating economic disparity among different regions.
In a number of cases, rural banks in India have performed even better than the cooperative and commercial banks, such as in terms of non farm rural activities, in lending loans to small traders, in financing the Self Help Groups and so on.
We all know what rural banks refer to. But we never seem to know it completely. This article focuses on bridging the gap between knowledge and complete knowledge. The article focused on the objectives of a rural bank, which I liked the most about the article. I liked the way a simple concept was explained so wonderfully.
You really mean Rural bank do help people of other trades and just not the farmers. This is really a good piece of article, as all my misunderstanding has come down with your clear form of writing. As you have mentioned above small traders can escape from the huge interest rate of money lender’s if they were away of such banking facility. Awareness is quite less on these topic, I guess