3. ASIBAS
Learning Objectives / Outcome
After studying this subject , you will be able
to understand:
Course Objectives
Course Content Syllabus
Course Learning Outcomes ( CLOs )
Pedagogy for Course Delivery
Assessment Scheme
Text & References
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4. ASIBAS
Details of the Course
• Credit Units ; 3
• Course Code : INS 725
• Course level : PG
• Lecture 2 Credit
• Self / Field Work : 2
• No of PSDA : 4
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5. ASIBAS
Course Content / Syllabus
Module 1 : Overview of Rural India
Module 2 : Financing in Rural Area
Module 3 : Priority Sector
Module 4 : Agriculture Credit
Module 5 : Microfinance and Financial Inclusion
Module 6: MSME
Module 7 – Emerging Trends in Rural Banking
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6. ASIBAS
Course learning Outcome ( CLO`S)
• CLO 01 To provide an overview of demographic features of
Rural India and Appreciate the Basics of financing in Rural
Areas
• CLO 02 To understand Lead Bank Scheme and Service Area
approach and understand Priority Sector Financing
• CLO3 To Understand delivery channels of agriculture credit
• CLO4 To understand the mechanism of Micro Finance and
Micro Finance Institutions and to understand the Financial
Inclusion and SME financing
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7. ASIBAS
Professional Skills Development Activities
( PSDA)
– Branch Visit to Collect Application Form and
Proposal Form for Crop Loans, KCC, Tractor
Loans, and Dairy Loans
– Case study on rural banking and microfinance
– Assignments related to Various Govt.
Sponsored Schemes
– Presentation on the above Products.
•
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8. ASIBAS
Pedagogy for Course Delivery
• Lectures
• Presentation
• Assignments
• Case Studies
• Group Discussion
• Remote learning using Four Quadrant
Approach – E Tutorial , E Content ,
Discussion Form and Assessments
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12. ASIBAS
Content – Module 1
Demographic Features, Population , Occupation
Literacy, Socio- Economic development indicators
Health, nutrition and
education
Urban migration
Characteristics of Rural Society
Caste and Power structure
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13. ASIBAS
Introduction
• "The soul of India lives in its villages" - Mahatma Gandhi
• This famous observation made by Mahatma Gandhi many years ago, still
holds true.
• The rural population comprises the core of Indian society and also
represents the real India.
• Therefore, it is our responsibility to build a system that delivers basic social
infrastructure to rural people in an effective manner.
• In order to ensure that the fruits of India’s progress are shared by all
sections of society, the government has identified several elements of social
and economic infrastructure, critical to the quality of life in rural areas.
• Well, before we discuss in detail about the services and facilities being
planned and provided by the government, it’s important to know what
constitutes the rural sector in India.
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14. ASIBAS
Rural Sector
• The "rural sector" means any place as per the
"latest census" which meets the following
criteria,
• A population of less than 5,000
• Density of population less than 400 per sq km
and
• More than "25 per cent of the male working
population" is engaged in agricultural pursuits.
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15. ASIBAS
Bharat Nirman
• The government has started many programmes aimed
at improving the standard of living in villages or rural
areas.
• To build rural infrastructure, the government
launched a time-bound programme called the Bharat
Nirman(External website that opens in a new
window) in 2005.
• Under the Bharat Nirman, action is proposed in the
areas of Water Supply, Housing, Telecommunication
and Information Technology, Roads, Electrification
and Irrigation. 15
16. ASIBAS
National Portal of India
• This section of the National Portal is
designed to give detailed information to
the rural population of India. Information
on the various services, facilities and
opportunities available, and how to benefit
from welfare schemes is given. A list of
online services is also available.
• https://www.india.gov.in/content/rural-
indian
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17. ASIBAS
• Be it applying for loans, or knowing how to protect crops, or
how to find the nearest hospital for health check-up and how
to find the nearest school for children; information about
schemes for the promotion of rural industry; provision of basic
infrastructure facilities in rural areas e.g. schools, health
facilities, roads, drinking water, electrification; government
assistance to individual families and Self Help Groups (SHG)
living below poverty line, every small and big detail can be
found here.
• Information of interest has been classified under the following
heads:-
•
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18. ASIBAS
• Livelihood
• Education
• Housing and Development
• Land Reforms
• Initiatives by State Governments
• e-Governance in Rural Development
• Health Care
• Training and Employment
• Governance
• Welfare
• Services, Schemes and Forms
•
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20. ASIBAS
Rural Demographics
• The huge density of the rural population exerts human pressure on natural resources and
adversely affects the quality of life.
• According to the 2001 Census, 74% of India’s population lives in villages that vary
considerably, although an overwhelming majority of villages have a population of less
than 1000.
• In a rural area, there are fewer people, and their homes and businesses are located far
away from one another. Agriculture is the primary industry in most rural areas. Most people
live or work on farms or ranches. Hamlets, villages, towns, and other small settlements are in
or surrounded by rural areas.
• As of 2019, there's a total of 664,369 villages, up from the 649,481 in the 2011 Census of
India and the 638,365 recorded in the 2001 Census of India. States and Union territories of
India 304716.
• Each village, much like an urban setting, needs a list of public services and facilities, which
are provided by the government.
• Rural population (% of total population) in India was reported at 64.61 % in 2021, according
to the World Bank collection of development indicators, compiled from officially recognized
sources.
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21. ASIBAS
Rural Demographics
• Uttar Pradesh has nearly 1 lakh inhabited villages thus making it the state
with the highest number of inhabited villages.
• Lakshwadeep has the least number of inhabited villages i.e. 8.
• The census is conducted by the Office of the Registrar General and Census
Commissioner.
• Rural population refers to people living in rural areas as defined by national
statistical offices. It is calculated as the difference between total population
and urban population. Aggregation of urban and rural population may not
add up to total population because of different country coverages. India
rural population for 2021 was 900,239,774, a 0.25% increase from 2020.
• India rural population for 2020 was 898,024,053, a 0.29% increase from
2019.
• India rural population for 2019 was 895,386,227, a 0.34% increase from
2018.
• India rural population for 2018 was 892,338,114, a 0.39% increase from
2017.
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22. ASIBAS
Top 10 Characteristics
of the Rural Community / Society
• The ten essential characteristics of the rural community are as
follows:
• a. Size of the Community
• b. Density of Population
• c. Agriculture is the Main Occupation d. Close Contact with Nature
• e. Homogeneity of Population
• f. Social Stratification
• g. Social Interaction
• h. Social Mobility
• i. Social Solidarity
• j. Joint Family.
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23. ASIBAS
• a. Size of the Community:
• The village communities are smaller in area than the
urban communities. As the village communities are
small, the population is also low.
• b. Density of Population:
• As the density of population is low, the people have
intimate relationships and face-to-face contacts with
each other. In a village, everyone knows everyone.
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24. ASIBAS
C. Agriculture is the
Main Occupation:
• Agriculture is the fundamental occupation of the rural
people and forms the basis of rural economy.
• A farmer has to perform various agricultural activities
for which he needs the cooperation of other members.
• Usually, these members are from his family. Thus,
the members of the entire family share agricultural
activities.
• That is the reason why Lowry Nelson has mentioned
that farming is a family enterprise.
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25. ASIBAS
• d.Close Contact with Nature:
• The rural people are in close contact with nature as most of
their daily activities revolve around the natural environment.
This is the reason why a ruralite is more influenced by nature
than an urbanite. The villagers consider land as their real
mother as they depend on it for their food, clothing and shelter.
• e. Homogeneity of Population:
• The village communities are homogenous in nature. Most of
their inhabitants are connected with agriculture and its allied
occupations, though there are people belonging to different
castes, religions and classes.
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26. ASIBAS
f. Social Stratification:
• In rural society, social stratification is a traditional characteristic, based on
caste. Rural society is divided into various strata on the basis of caste.
• g. Social Interaction:
• The frequency of social interaction in rural areas is comparatively lower
than in urban areas. However, the interaction level possesses more stability
and continuity. The relationships and interactions in the primary groups are
intimate. The family fulfills the needs of the members and exercises control
over them.
• It is the family, which introduces the members to the customs, traditions
and culture of the society. Due to limited contacts, they do not develop
individuality and their viewpoint towards the outside world is very narrow,
which makes them oppose any kind of violent change.
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27. ASIBAS
• Social Mobility:
• In rural areas, mobility is rigid as all the occupations are based
on caste. Shifting from one occupation to another is difficult as
caste is determined by birth. Thus, caste hierarchy determines
the social status of the rural people.
• i. Social Solidarity:
• The degree of social solidarity is greater in villages as com-
pared to urban areas. Common experience, purposes, customs
and traditions form the basis of unity in the villages.
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28. ASIBAS
• Joint Family:
• Another characteristic feature of the rural society is
the joint family system. The family controls the
behaviour of the individuals. Generally, the father is
the head of the family and is also responsible for
maintaining the discipline among members. He
manages the affairs of the family.
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29. ASIBAS
Rural Population
• Rural population refers to the population in areas that have
a lower population density than urban areas and are
spread over a larger area out than urban centres.
• Rural population is the population living outside of cities.
• Work in these areas is often more focused on agriculture than
urban areas.
• In India, a village or town with 5,000 or more population and
with 75 percent or more of the male labor force not directly
engaged in agriculture is considered urban.
• In India, 28 percent of the population is considered urban
and 72 percent rural.
• https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locati
ons=IN 29
30. ASIBAS
Rural Occupations
• The rural settlements derive their life support or basic economic needs from land-
based primary economic activities.
• The main occupation of the rural settlements is agriculture and other primary
activities.
• Agro-based activities are also common in rural areas.
• This influences the location of the rural settlements. Hence these settlements are
located close to agricultural fields and forest
• Agriculture is the main occupation in rural areas. The percentage of the rural
population in India is 65.13% which is why agriculture is so important to the
country’s economy.
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31. ASIBAS
• As of 2016, 59% of the total workforce in India is engaged in
agricultural activities.
• There are various kinds of farming methods practiced in India
including primitive subsistence farming, humming, intensive
subsistence farming, and commercial farming and all of these
aim to grow either food crops or cash crops, or both.
• India has three cropping seasons throughout the year—Rabi
crops which are sown in winter and harvested in summer,
Kharif crops which are sown before monsoon and harvested
during September and October and Zaid crops which are
grown during the summer months
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37. ASIBAS
Rural Literacy
• According to the 1951 census; it was only 12.10 percent which increased
up to 36.01 percent in 1981 and now in the 2011 census; it has
recorded 67.77 percent.
• India is a country with a 138 crore (1.38 billion) population which is further
divided into two sections: urban and rural.
• The rural population of India represents 65% of the total population, around
88 crore (880 million).
• As of 2021, the literacy rate in rural India was around 73.5%. This includes
81% male and 65% female literacy in rural section of India.
• As the rural economy currently contributes to 25-30% of the country’s
GDP, literacy in these parts is important for the Indian economy.
• Between years 2003 to 2014, the rural literacy grew at a CAGR of
approximately 3.42%.
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38. ASIBAS
Rural Education
• And to further increase the literacy and growth
rate, the government of India has launched
many initiatives such as Samagra Shiksha,
Jahawar Navodaya Vidyalaya, mid-day meal
schemes, digital initiatives etc.
• The goal of these initiatives is to increase the
enrolment rate and also to encourage the
already enrolled students to attend regularly.
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41. ASIBAS
• Agriculture sector is the driving force of India. A large number
of the Indian population is involved in agriculture and allied
industries’ business.
• Similarly, there are many sectors originating out of the rural
society driving the economy.
• With education, the rural population can apply new knowledge
and implement better technology and practices into their
businesses.
• This will even help in bringing the per capita income of the
country up and reducing poverty.
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42. ASIBAS
Schools and Colleges in rural India
• India has many school governing bodies. There are many
school management bodies having schools spread across India
such as the department of education, tribal welfare department,
local bodies, government aided, private, social welfare,
Kendriya vidyalaya, railway, etc. These schools fall under
various categories such as higher secondary schools, universal
public schools, secondary schools, public schools.
• As of 2019-20, the total number of schools in India was 1.5
million and out of those, around 1.26 million schools are
located in the rural parts of India. With large part of the
population in the region, majority of the schools in India are
located in the rural India.
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44. ASIBAS
• The above chart shows the data on
schools in rural parts of India. As per this,
more than 83% of the total schools are
located in rural India.
• As of 2019-20, India had around 42,343
colleges and about 60.56% of these
colleges were located in the rural parts of
the country.
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45. ASIBAS
• Why is it important to educate rural India?
Education opens up new opportunities to access new
information and technology that enables an individual to make
the right decisions in both personal and professional life.
• It allows children to understand policies, rights, laws from the
young age which will be helpful in the future.
• As 65% of the population of India is situated in rural areas,
emphasizing on rural education will help boost the overall
economy. Furthermore, it will also help in reduce migration of
people from rural areas to cites of employment and create new
opportunities.
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46. ASIBAS
Rural Education
• Following are some of the reasons why rural education is
essential for India’s growth:
• Agriculture is one of the most important sectors in India. In
2020-21, it contributed to 20.2% of the country’s Gross Value
Added (GVA). As per the census 2011, about 54.6% of the
country’s population was engaged in agriculture and allied
activities.
• Out of these, about of 70% the total rural households were
involved in agricultural activities; 82% of them being small
and marginal farmers making it the largest source of livelihood
in India. Thus, by improving rural education, agriculture
sector can grow a lot with new technologies and knowledge.
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47. ASIBAS
MSME
• Micro, Small and Medium Enterprises (MSME) sector is a
huge contributor to the Indian economy making up about 30%
of the country’s GDP.
• The share of MSME related products in total exports from
India was 48% during 2018-19. Out of about 63.4 million
MSME’s in India, 51.25% i.e. 32.5 million MSME’s are in the
rural areas.
• With the sector employing about 50 million people in rural
India, it is one of the most important sectors in the rural
economy. Hence, education is important for the growth of
the MSME sector.
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48. ASIBAS
Government initiatives
for rural education
• The biggest proponent of rural education is the government. How the
structure is formed, schemes are launched and the plans are executed
entirely depends on the government initiative. By understanding this, the
government of India has launched many initiatives to promote education in
rural areas.
• Samagra Shiksha
•
The is an integrated scheme for schools education launched in 2018-19 by
the Indian government, covers pre-schools to class XII. It aims to ensure an
equitable quality of education at all levels of school education across India.
It works to strengthen infrastructure, gender equality, improving education
quality, digital initiatives and the right to education for every child.
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49. ASIBAS
• Shiksha Karmi Project
The project launched in 1987 in Rajasthan works for universalization of
primary schools and socio economically backward villages in the state
where the existing primary education is dysfunctional. The project works to
improve and adapt the type of education suiting the local needs and
conditions.
• Lok Jambish Pariyojana
The initiative, also formed in Rajasthan in 1992, works for universalization
of elementary education through mass mobilization and participation of
people. It works to enroll children in regular schools and ensure they
regularly attend. The project also emphasizes on active learning, child
centered process and women empowerment and equality through
education.
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50. ASIBAS
Digital initiatives
• To combat issues such as declining student
attendance, lack of committed teachers, proper
infrastructure and quality and access to education, the
government has taken several digital initiatives.
• These digital platforms, namely e-PATHSHALA,
Diksha, MOOC, SWAYAM PRABHA, and National
digital library can be accessed through any part of the
country.
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51. ASIBAS
Future Outlook
Various initiatives taken by the government should assist in
providing accessibility and affordability of quality education to
the rural population. Sectors such as agriculture, MSMEs, dairy,
fisheries, fertilizers, etc. contribute in a major way to India’s
GDP growth.
• Hence, a well-educated rural population can make a difference
in their respective areas and lend more stability to the
economy. This in turn should support India’s aim to become a
US$ 5 trillion economy by 2025.
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52. ASIBAS
Health and Nutrition
• In rural communities, there are significant disparities in important health
indicators such as high rates of infant mortality, malnutrition, maternal
mortality, low rates of vaccination, and low life expectancy.
• People living in rural areas also tend to have poorer socioeconomic
conditions, less education, higher rates of tobacco and alcohol use, and
higher mortality rates when compared to their urban counterparts.
• Nutrition Challenges include poverty, food and nutrition insecurity,
inadequate infrastructure, limited access to healthcare facilities, low levels
of education and inadequate food intake
• Poor rural people are the most affected by poverty and food and nutrition
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