Abstract: Banking sector plays a critical role in the financial health of a nation .The banking system of India features a large network of banking branches, offering many kinds to the people. One of the major measures of economic development and financial growth of a country has been the sound performance of its banks .To maintain a healthy banking practices , The Reserve bank of India formulates and executes a monetary policy is one of the important of economic development in India . India economic growth is largely supported by banking sector .After independence, the major aim of rural credit policy in our country has been to expand of institutional financing with a view to curtail the role of indigenous financial agencies like moneylenders. The All – India Rural Credit Survey Committee (AIRCSC) perceived that only multi-purpose co-operatives can be a viable solution to the problem of rural finance. the role and importance of agriculture in Indian economy for employment generation to poverty alleviation, rural development taken as one of the most important path for nation’s growth. It is found that most of rural populations are poor and they depend upon agriculture. For a smooth implementation in credit delivery mechanism of rural poor, government of India promoted rural regional banks. Rural banking in India plays a vital role in development of rural economy. In this paper an attempt has been made to study the performance of Regional rural banks, Commercial banks, Investment bank and private sector bank, which play an important role in the rural credit the study is diagnostic and explanatory in nature and make use of secondary data . This article is divided in three parts. First part includes the introduction and general scenario of Indian banking industry in rural India. The second part discusses the various challenges and opportunities faced by Indian banking industry in rural India. Third part concludes that urgent emphasis is required on the Indian banking product and marketing strategies in order to get sustainable competitive edge over the intense competition from national and global banks.
Keywords: RBI, Commercial Banks, performance, rural credit market, Regional rural bank, NABARD.
Title: Indian Banking Sector Impact on Economic Growth Rate and Social Development of Rural Areas of India
Author: Obaid-Ur-Rehman
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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