 India is a country of villages , about 50% of

the villages have very poor socio-economic

conditions.
 Need for proper basic infrastructure.
 Financial assistance to the poor by providing
productive resources through credit and
subsidy.
 Livelihoods rely on businesses this called for
Rural Marketing.
 Most of the population of rural areas is poor
and needs financial assistance in the form of credit.
 Borrow money to buy fertilizers ,seeds ,other implements.
 Family expenses of marriage, death, religious
ceremonies.

 Money lenders and traders exploit the poor farmers.

 Lend money on High Rate of Interest.
 Do not maintain proper accounts and Harass the
poor
farmers.
 Borrowers find themselves in a Debt Trap.
 Sources o f Credit
Informal Sources :
Non Govt. sources such as
family,friends,moneylenders,trad
ers etc.

Formal Sources :
Govt. owned institutions such as
commercial banks, regional
rural banks etc
Reforms:-
 National Bank for Agriculture and Rural
Development.
 Regional Rural Banks.
 Commercial Banks.
 Cooperative Banks.
 Micro Finance Institutions.
 Self Help Groups.
 Green Revolution.
 Introduction of Subsidy.
 National Bank for
Agriculture and Rural
Development
 Established on 12 July 1982 by a special act by
the parliament.
 It is an apex body to coordinate Rural Financing
System.
 Its main focus was to uplift rural India by
increasing the credit flow.
 It regulates the cooperative banks and
the RRB’s.
 Provide financial services to micro-entrepreneurs
and small businesses, which lack access to banking
and related services due to the high transaction costs.
 Give loans to poor rural people at a low interest rate.

 Promote Self Reliance.

 Provision of Subsidies.
 Provide Access to Funds.
 Encourage Entrepreneurship.
 Community wide Benefits.
 Empower women.
 Self Help
 Are Groups
village-based financial
intermediary usually composed of 10-20
members of the same area.
 Members make small regular savings
contributions and lend at a very low
rate of interest.
 These are Non Profit organizations
and
work for the welfare of the
members.
 Main objective is to Empower
Women.
 Building blocks of the rural and village