English, asked by dabodiya6320, 1 year ago

Write an essay about - Role of Banking in Rural Development

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Answered by Anonymous
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Our banking sector consists of three kinds of banks-State Owned Commercial Banks (SOBs), Private Commercial Banks and Foreign Private commercial Banks. Among them, Nationalized Commercial Banks and some other private banks and more particularly some specialized banks are operative in rural areas. The foreign private banks are not interested to open their branches in rural areas.

 

Role of bank in rural development – The role of bank in rural development is manifold. Banks are functional in the processes of savings, capital formation, investment, production in the rural economy.

Role of Commercial Banks in Rural Development.. Such as –

Banks motivate the people for savings through various programs and collect the dispersed savings of the people. Further, bank invests it in rural economy.Banks provide the rural small businessmen with loans from deposited money which plays a crucial role in rural development. Specially, the micro credit programs of different banks made the rural landless people bankable and provided them with required capital for business and other economic activities.
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