Concepts....
The concept of development of rural areas does not arise in case of highly developed countries of the world rather the idea directly indicates a great problematic country.
As a matter of fact all the LDC`s and developing countries are economically logging behind only due to the above problem.
The difference of rural and urban life is considerably clear and high with regard to standard of living,Other social-economic factors including production science and technology.
Economic activity :-
Rural economy of the under developed country is characterized by low output of products resulting low income ,savings ,
investment employment and so on. On the other hand 90% of the population resides in the rural areas having higher rate of population growth and death followed by the natural calamities and epidemics.
investment employment and so on. On the other hand 90% of the population resides in the rural areas having higher rate of population growth and death followed by the natural calamities and epidemics.
Low income practically yields no savings . Illiteracy lack of financial and modern technological assistance's is leading the rural areas to hell day by day.This state of affairs is not desirable for any country.This would create vied gap between urban life and that of rural and lead to political imbalance which would ultimately invite a civil war and destroy the whole economy of the country bringing further sufferings of the people.
Where the countries economy is based on agricultural product and majority of its population,resides on rural areas lacking in literacy,mechanized system of production latest technology and finance banks have a significant role in the development of rural economy.Banks can play their role on the followings areas in developing a rural economy on the present days offering various systematic credits and stabilizing savings. |
Co-operative Activity :-
Banks can infuse the idea of saving among the members of cooperative societies and also finance in their societies engaged in various productive activities and creates employment facility.
Development of land :-
In conformity with the government policy of land proclamation and development of individual and societies banks directly finance to ameliorate production.
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Mechanization :-
In all the sectors like horticulture,forestry,animal,husbandry,poultry,dairy, sericulture ,small industries,supplementary to agriculture are being mechanized to yield higher production banks,finance in the respect also.
Hy v seed storage :-
Highly yielding varieties of seeds are required for higher production .Hy v seed storage is also a factor to the growers .They need the seeds in time.Some institution are engaged in this trading where banks finance.
Ensure power supply:-
Mechanization and application of modern technology requires uninterrupted power supply.Banks offer c resit to procure power generators to ensure power supply various rural activities.
Irrigation facility :-
Irrigation is the heart of agricultural products Banks,are assisting financially the producers of agricultural goods to procure irrigation equipments and or leasing the rel event machinery
Small industrial Units :-
Products of handicrafts and small agricultural machinery and equipments are being financed by Banks are assisting the units in procuring machinery and in working capital.
Modern storage facility:-
Storage of goods and produces are very much important now a days,To ensure uniform prices of seasonal goods throughout the year storage facilities is highly required .Banks are financing in this sector.
Marketing Facilities :-
Marketing means trading ,Banks always entangle their business with the traders in case of rural traders these is no difference.
Technical assistance's:-
Now a days banks are employing technical personnel to help the borrowers with technical advises as and when they require.In case of rural banking banks pay more attention.
Mobilization of saving :-
Improving financial activities through credit facilities banks encourage rural people to save their earning side by side.
organizational ability:-
Financial strength of an organization help planning under span of their performances.Banks are helping all the production oriented rural bodies financially to improve their ability of higher production capacity.
Vital role :-
In fine it may be mentioned that all the above factors of production would give expected results if Bankers exert their utmost efforts and all the relative government machinaries and local bodies co-operative honestly and sincerely.Other wise only methodical role set out,for the Banks to play would not bring any change rather fetch disorders in the rural society worse than the existing.