Question

Why is it necessary for the banks and cooperative societies to increase their leading facilities in rural areas? explain8

Answer 1

a  inorder to improve credit situation in india , it is important toprovide cheap loans and credit schemes must expand in rural households. 
b to set up more banks in rural remote areas , making people aware about SHG's.these sources must extend their helping hand should reach out to all others
c provide loans with reasonable rates of interest , generating greater awarness among the people about formal sources so as to reduce their dependence on informal sector
d it will also prevent people from getting exploited after borrowing from informal sources.
e to serve as building blocks for rural households 
f this will help people to start up small buisnessess and trades 
g it can also help farmers expand their cultivation 
h people can also setup small scale industries
i it can certainly be an engine of growth

Answer 2

Answer:

there should be Bank in cooperative to increase the leading facility in rural areas because of the following reason

1. many of the landlord and landers exploit the borrows financially and physically
2. they behave arbitrary while giving loans and in terms of loans
3. they make flexible terms of credit
4. the formal source of loan provide them loan in cheap and affordable credit but money lenders chart very high rate of interest on giving loan
5. formal source of credit provide many helpful facilities like agriculture providing seats etc but informal source does not provide an exploit them