Role of Banks In Agriculture & Rural Development

The banking sector has witnessed a huge growth in the recent years. However, despite such a growth, the credit flow by banks to the rural and agricultural sectors remains dismal, which, more or less, has resulted in financial exclusion of the rural masses. The rural and agricultural sectors have to play a very important role if a target of 8% GDP growth per annum as envisioned in the tenth plan is to be achieved. And the banks and the Chartered Accountants have a huge role to play in boosting the rural and agriculture sector through product innovation, broadening the reach, promotion of SHGs/Micro enterprises and providing know-how. This article provides an overview of the concept.

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