Micro financing programme of the assam gramin vikash bank to rural people of sibsagar district and its impact on their economic development

Abstract

In recent times the two important components of rural development are Regional Rural Bank newlineand Micro finance system through the banks. The introduction of Assam Gramin Vikash Bank newlinebelonging to the rural banks is an effective development towards the state s rural sector. The newlineCommercial banks at a time covered the whole credit policy of the country as well as the North newlineEastern Region including Assam. These banks have limited area of operation and their services newlinewere availed by only specific area of urban population. They have some urban oriented motive newlinethan advancing credit and operating deposits in rural areas. Their role are important only for newlineimproving the quality of life through reducing the poverty in the urban areas. So to overcome newlinethe problems of rural community the regional rural banks were established to link up with rural newlineproblems and to give stress on rural development. India s rural sector is considered to be the newlinepivot around which the over all economic development of the country revolves. Since newlineindependence, emphasis has been laid on the all round development of this sector, as is evident newlinefrom the five year plans, with the government opening up various avenues for its all round newlinedevelopment. With an estimate of around 70% of the population residing in rural areas, this newlinesector needs special attention indeed, of late, there has been an increase in the disposable newlineincome of the rural people. This has enhanced an increase in their standard of living as well. In newlineorder to help people meet the desired life style, the government has initiated different projects newlineon irrigation, employability, infrastructure and advanced, development of agriculture and newlinemodern technologies. In order to boost an efficient financial system the Reserve Bank of India newlinehas instructed the commercial and rural banks to penetrate in to the rural areas and make them newlinefinancially viable. Special emphasis has been laid on agriculture and various banking schemes newlinebeing provided to the rural farmers newline