Explain the credit
and marketing rural aries
Answers
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.
3. 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.
4. Sources of 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
5. 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.
6. 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.