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Review of Rural Financing

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A REVIEW OF RURAL FINANCING IN INDIA
SHUBHAM TRIVEDI & PRIYANKA SINGH
MBA IB, UPES DEHRADUN

ABSTRACT
Talking about the Today Scenario, Financial Institutions are focusing on the improving system for Finance in Rural Areas. As on the day when Narendra Modi's Government came on the rule, it has already focused on increasing the number of branches of Commercial Banks in rural areas in order to provide better financial services to the people residing in such areas. Moreover the interest rate of financing in rural areas should be kept low as in comparison to that financing in urban areas and moreover the time period should be increased. As we can see that previously Agriculture was one of the main sources of income of people but now the fact has changed. As people are migrating to urban areas in search of jobs where they could get more amount of money in order to fulfill their basic necessities. This is because we can consider due to changing weather conditions in India as production level has gone down due to less rain. Thus in order to encourage growing of agricultural products, the Government should take initiative in increasing the finance in order to cope up these different situations that the country is facing. Now the State Government of Uttar Pradesh has taken the initiative. As this year due to heavy rains in most parts of Uttar Pradesh, the crops were destroyed and moreover the farmers were at loss and thus even resulted in increasing number of suicides in the states by farmer. Thus in order to overcome the situation what the Government did was that it provided the compensation for the loss which the farmer has incurred and moreover a very good action taken was that people who have taken loans will not be now requiring to pay back the loan amount. Moreover if we look on the negative aspect of rural financing then…...

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