Role of Regional Banks of Uttar Pradesh in Developing the Rural Economy

Abstract

The Regional Rural Banks were established ‘’with a view for developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to Small and Marginal Farmers, Agricultural, Laborers, Artisans, and Small entrepreneurs and for matters connected there with and incidental thereto”. The necessity of rural finance was felt to provide protection & reliance to rural people who rely highly on informal source of finance like Moneylenders, Landlords & Traders etc. but they exploit farmers and small entrepreneurs by charging exorbitant rate of interest & force farmers to sell their product at low price to them. Rural people also face the risk of unpredictable production of crops due to high dependency on Monsoon. The problems of finance suffer from lack of seeds