The future lies with those companies who see the poor as their customersµ ~C.Prahalad .K.

WHAT IS RURAL BANKING ? It is a form of banking service 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 smallestscale economic activity.  Financial Intermediation Objectives: The approach involves increasing the accessibility of banking services to the poor in a commercially sustainable manner. .

small entrepreneurs and persons of small means . whether individual or in groups and to co-operatives societies  The granting of loans and advances. particularly to small and marginal farmers and agricultural laborers. particularly to artisans.BUSINESS OF A RURAL BANK  The granting of loans and advances.

INITIATIVES FOR RURAL BANKING DEVELOPMENT  Haryana State Cooperative Apex Bank Limited  NABARD  United Bank of India  Syndicate Bank  Co-operative bank .

Government passed the Regional Rural Banks Act. industry and other productive activities in the rural areas. 1976. commerce. The main objective of RRBs is to provide credit and other facilities to the small and marginal farmers. .REGIONAL RURAL BANKS The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs). trade. agricultural labourers and small entrepreneurs and develop agriculture.

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 .



They were responsible for all matters concerning policy . The main aim was to provide credit facilities to the farmers through co-operatives & regional rural banks.ESTABLISHMENT OF NABARD National Bank for Agricultural and Rural Development was established in July 1982. . planning & operations in the field of credit for agricultural & other economic activities in the rural areas.

Nationalization of banks  14 Largest Indian commercial banks were nationalized in 1969.  In 1951 informal credit accounted 70% of rural lending and less than 1% of rural household debt came from commercial bank.RURAL BANKING AFTER INDEPENDENCE  Pre-Nationalization period The presence of banking sector was very limited.   .  The central aim was to provide the banking services to all sections of society.

ROLE OF RBI IN RURAL CREDIT Micro±Finance Kisan Credit Card Agricultural Insurance Marketing of Mutual Fund Units .

. While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out. but also saving it crores of rupees by way of reduced transaction costs.MOBILE BANKING Mobile banking is not only helping the government to take a step forward towards fulfilling its aim of having one bank account for every household. mobile banking helps it reduce the cost to a mere Rs 2.

 Customers get a secure electronic identity via phone or smartcard. photograph and relevant details of the savings or loan accounts held by the issuing bank.MOBILE BANKING  The mobile acts as a branch of the bank by storing a database of customers. . while agents take deposits and dispense cash. which biometrically stores the identity of the customer such as name. address. It has a smartcard.

System Design Wap Request Wap Response HTTP request search search Database Server update HTTP response Interface Server Bank Server Database Server update .

CHALLENGES IN MARKETING OF BANKING SERVICES IN RURAL MARKET  Lack of adequate financial market.  Rural interest subsidy .  Underdevelopment of rural infrastructure.  Lack of financial discipline.  Lack of collateral.  Low density of population.  Low value of loans for poor sections.


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