Rural Banking Ppt

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Transcript of Rural Banking Ppt

RURAL BANKING

PRESENTED BY ANUPAMA MUKHERJEE ARCHISHA GARG

The future lies with those companies who see the poor as their customers~C.K.Prahalad

WHAT IS RURAL BANKING ?It is a form of banking service that provide solution to the financial needs of the consumers in Rural areas

OBJECTIVES OF BANKING SERVICES IN RURAL AREAS Poverty Alleviation Objectives:The objectives is to uplift the mass of population residing in the rural areas who are currently below the poverty line by extending credit to the smallestscale economic activity. Financial Intermediation Objectives: The approach involves increasing the accessibility of banking services to the poor in a commercially sustainable manner.

BUSINESS OF A RURAL BANK The granting of loans and advances,

particularly to small and marginal farmers and agricultural laborers, whether individual or in groups and to co-operatives societies The granting of loans and advances,

particularly to artisans, small entrepreneurs and persons of small means

INITIATIVES FOR RURAL BANKING DEVELOPMENT Haryana State

Cooperative Apex Bank

Limited NABARD United Bank of India Syndicate Bank Co-operative bank

REGIONAL RURAL BANKSThe Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs). Government passed the Regional Rural Banks Act, 1976. The main objective of RRBs is to provide credit and other facilities to the small and marginal farmers, agricultural labourers and small entrepreneurs and develop agriculture, trade, commerce, industry and other productive activities in the rural areas.

OBJECTIVES OF REGIONAL RURAL BANKSBridging the credit gap in rural areas. Check the outflow of rural deposits to urban areas. Reduce regional imbalances and increase rural employment generation

ESTABLISHMENT OF NABARDNational Bank for Agricultural and Rural Development was established in July 1982. The main aim was to provide credit facilities to the farmers through co-operatives & regional rural banks. They were responsible for all matters concerning policy , planning & operations in the field of credit for agricultural & other economic activities in the rural areas.

RURAL BANKING AFTER INDEPENDENCE Pre-Nationalization periodThe presence of banking sector was very limited. In 1951 informal credit accounted 70% of rural lending and less than 1% of rural household debt came from commercial bank. Nationalization of banks 14 Largest Indian commercial banks were nationalized in 1969. The central aim was to provide the banking services to all sections of society.

ROLE OF RBI IN RURAL CREDITMicroFinance Kisan Credit Card Agricultural Insurance Marketing of Mutual Fund Units

MOBILE BANKINGMobile banking is not only helping the government to take a step forward towards fulfilling its aim of having one bank account for every household, but also saving it crores of rupees by way of reduced transaction costs. While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it shells out, mobile banking helps it reduce the cost to a mere Rs 2.

MOBILE BANKING The mobile acts as a branch of the bank by storing adatabase of customers. It has a smartcard, which biometrically stores the identity of the customer such as name, address, photograph and relevant details of the savings or loan accounts held by the issuing bank.

Customers get a secure electronic identity via phone orsmartcard, while agents take deposits and dispense cash.

System DesignWap Request

Wap Response

HTTP requestsearch search Database Server update HTTP response

Interface Server

Bank Server

Database Server update

CHALLENGES IN MARKETING OF BANKING SERVICES IN RURAL MARKET Lack of adequate financial market. Low value of loans for poor sections. Lack of collateral. Low density of population. Underdevelopment of rural infrastructure. Lack of financial discipline. Rural interest subsidy

THANK YOU