Role of Rural Credit Institutions in India for Agriculture and Rural Development: An In-depth Study

In this research paper issues and concerns of rural credit in India which is a powerful tool for enhancing production and productivity of Indian agriculture for sustainable development has been analysed. Some of the strategies adopted by the Reserve Bank of India (RBI) to enhance rural credit have been highlighted.  The role of the Regional Rural Bank (RRBs),   Micro-finance Institutions, Self Help Groups (SHG), etc., have been analysed in detail. For agricultural credit the Kisan Credit Card (KCC) scheme introduced in August 1998 by Indian banks is a praiseworthy step. This Scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs. In spite of many efforts put up by various organisations to increase the rural credit facilities, several challenges are there. It is pertinent to mention that the Co-operative Banks are providing the largest proportion of total institutional credit to agricultural and allied activities, nearly 55 percent to the agricultural sector.