Banking and Rural Development

With the increasing number of problem categories of rural households (small farmers, landless labourers and impoverished artisans), problems areas such as drought-prone and tribal areas, problem crops such as edible oils and pulses, problem purposes such as repairs to existing irrigation sources and land development and with the rural sector becoming more diversified and commercial, the role of commercial banks and co-operative credit institutions in rural development has become complex, gigantic and difficult. The research papers included in this book provide the necessary background and correct historical perspective to critically appreciate the current rural development problems. It is divided into two parts each with seven papers. Part 1 presents an in-depth analysis of the basic issues involved in rural development while Part II brings out how the rural credit institutions have transformed themselves into rural development banks and only for advancing loans but also for development planning. The challenges faced by banks and their limitations in this regard are reviewed. The policy-makers, bankers/and students interested in rural development will find this publication interesting and instructive.

Dr. H.B. Shivamaggl (b.1926) after obtaining M.A., Ph.D. degrees in Economics from the Bombay University, joined the Reseave Bank of India as a Research Officer in 1956. During the course of his career for nearly 30 years in the Reserve Bank, he has worked in various capacities-Director of Rural Economics, Adviser In-charge of Economic Department, Secretary of the Reserve Bank and Executive Director in charge of Department of Banking Operations and Development (DBOD) and Rural Planning and Credit Department (RPCD). He also worked as Senior Director to set up Evaluation Cell in ARDC (now NABARD), 1974, Secretary of the Reserve Bank Committee on Regional Rural Banks, 1976, Member-Secretary of the Researve Bank Committee on Rural Agricultural Credit, 1979, Team Leader for Agricultural Credit Review Study sponsored by World Bank/RBI/AFC, 1988, and as Consultant to the World Bank in Malaysia - 1978, to restructure the Rural Credit System of that country. Dr. Shivamaggl has also served as RBI Director on the Boards of Directors of Public-Sector Banks. Dr. Shivamaggi has published a number of research papers relating to Rural Development in India.