ROLE OF COMMERCIAL BANKS IN THE DEVELOPMENT OF RURAL INDUSTRIES IN INDIA
Author(s):
R.Eswaraiah, P.R.Sivasankar
Keywords:
Rural Industries, Commercial Bank, Lending policies, MSMEs
Abstract
Rural industries play a pivotal role in the economic development of India. It is generally stated that the economy in rural industrialization not only raises the per capita income and living standards of the people by providing gainful employment opportunities, but also reduces income disparities between rural and urban areas. Moreover, promotion of rural industries provides an ample opportunity for optimum utilization of local resources to serve the local needs. Rural industrialization has become one of the major economic and social goals of economic development and formed part and parcel of planning and development of India. The objective of rural industrialization implies widely dispersed on a Micro, Small and Medium Enterprises (MSMEs) with as high an employment potential as is compatible with an efficient technique and the requirement of process of development. The Commercial banks are playing an important role in the development of rural industries in India. Most of the credit-related schemes of the government to uplift the poorer and the under-privileged sections have been implemented through the banking sector. The banking sector's role in deposit mobilisation and extending credit is of much importance. The commercial banks have extended loans at concessional rates to rural industries. The functioning of banks through financial inclusion and social banking is also worthy of note. Commercial banks have to concentrate more and more lending to the rural industries. Otherwise, Rural Industries will suffer from shortage of money. The role of Commercial banks should be increased further in lending to the rural Industries.
Article Details
Unique Paper ID: 157594

Publication Volume & Issue: Volume 9, Issue 7

Page(s): 615 - 620
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