Rural banking: Unexplored horizons
Summary :
Table of Contents
- Introduction
- Indian scenario
- Business potential
- Business delivery
- Conclusion
- Bibliography
Abstract
The announcement of India's Finance Minister on debt relief package for small and marginal farmers in the Parliament (Budget Session) has raised many eyebrows. The move to relieve the debt burden of small farmers to the tune of Rs.60,000 crores has immediately termed as an election manifesto of the ruling UPA Government. Bankers of the country have mixed opinions on the Government's decision. A sizeable number of them apprehend increase in the bad loans in future as the signal of loan waiver stay in the minds of borrowers for a long time. A few bankers welcomed the decision as it would increase the rural financing potential by making small farmers eligible for fresh loans after the proposed waiver. Dr. C K Prahlad, famous management guru of the world commented, "The waiver will only allow the farmers to become creditworthy again. What is far more important for them is better access to markets, skills up gradation and a host of other measures. For me, the loan waiver is good and not so good at the same time because it has not really solved the structural problems for farmers in India".
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