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AMITY INSTITUTE OF RURAL  MANAGEMENT RURAL  BANKING JAIDEV LAMBA ENROLLMENT. NO A4011309020
WHAT IS RURAL BANKING  ? <ul><li>It is a form of services that provide solution to the financial needs of the consumers in...
OBJECTIVES OF BANKING  SERVICES IN RURAL AREAS <ul><li>Poverty Alleviation Objectives: </li></ul><ul><li>The objectives is...
EVALUATION OF THE RURAL  BANKING AFTER INDEPENDENCE <ul><li>Pre-Nationalisation period </li></ul><ul><ul><ul><li>The prese...
RURAL BRANCH  EXPANSION PROGRAM <ul><li>In 1977 the 1:4 licence rule was implemented. </li></ul><ul><li>The contribution o...
ESTABLISHMENT OF NABARD <ul><li>National Bank for Agricultural and Rural Development was established in July 1982. </li></...
POST-LIBERISATION PERIOD <ul><li>The 1:4 rule & licence procedure was frozen in 1990. </li></ul><ul><li>There was a heavy ...
CHALLENGES IN MARKETING OF  BANKING SERVICES IN RURAL MARKET  <ul><li>Lack of adequate financial market. </li></ul><ul><li...
OPPORTUNITIES <ul><li>Sourcing of agricultural produce from India for global markets. </li></ul><ul><li>Govt. thrust. </li...
MARKETING STRATEGIES <ul><li>Developmental marketing. </li></ul><ul><li>Variable lending rate. </li></ul><ul><li>New produ...
MARKETING STRATEGIES contd…. <ul><li>Co-operative promotion. </li></ul><ul><li>Developing franchise model. </li></ul><ul><...
CONCLUSION <ul><li>All the statistics indicates there is a huge market for financial services in the rural areas. </li></u...
 
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Rural Banking J.D Lamba

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Rural Banking J.D Lamba

  1. 1. AMITY INSTITUTE OF RURAL MANAGEMENT RURAL BANKING JAIDEV LAMBA ENROLLMENT. NO A4011309020
  2. 2. WHAT IS RURAL BANKING ? <ul><li>It is a form of services that provide solution to the financial needs of the consumers in Rural areas. </li></ul>
  3. 3. OBJECTIVES OF BANKING SERVICES IN RURAL AREAS <ul><li>Poverty Alleviation Objectives: </li></ul><ul><li>The objectives is to uplift the mass of population residing in the rural areas who are currently below the poverty line by extending credit to the smallest-scale economic activity. </li></ul><ul><li>Financial Intermediation Objectives: </li></ul><ul><li>The approach involves increasing the </li></ul><ul><li>accessibility of banking services to the poor in a commercially sustainable manner. </li></ul>
  4. 4. EVALUATION OF THE RURAL BANKING AFTER INDEPENDENCE <ul><li>Pre-Nationalisation period </li></ul><ul><ul><ul><li>The presence of banking sector was very limited. </li></ul></ul></ul><ul><ul><ul><li>In 1951 informal credit accounted 70% of rural lending and less than 1% of rural household debt came from commercial bank. </li></ul></ul></ul><ul><li>Nationalisation of banks </li></ul><ul><ul><ul><li>14 Largest Indian commercial banks were nationalized in 1969. </li></ul></ul></ul><ul><ul><ul><li>The central aim was to provide the banking services to all sections of society. </li></ul></ul></ul>
  5. 5. RURAL BRANCH EXPANSION PROGRAM <ul><li>In 1977 the 1:4 licence rule was implemented. </li></ul><ul><li>The contribution of this policy was: </li></ul><ul><ul><ul><li>Increased the flow of bank credit & saving to rural areas. </li></ul></ul></ul><ul><ul><ul><li>A total of 30,000 rural branches were opened. </li></ul></ul></ul><ul><ul><ul><li>Rural sector accounted for 12.5 lakhs saving A/C’s & 2.5 crores borrowing A/C’s. </li></ul></ul></ul><ul><ul><ul><li>The share of bank credit & savings, for rural branches , rose from 1.5 % and 3% respectively to 15% each. </li></ul></ul></ul>
  6. 6. ESTABLISHMENT OF NABARD <ul><li>National Bank for Agricultural and Rural Development was established in July 1982. </li></ul><ul><li>The main aim was to provide credit facilities to the farmers through co-operatives & regional rural banks. </li></ul><ul><li>They were responsible for all matters concerning policy , planning & operations in the field of credit for agricultural & other economic activities in the rural areas. </li></ul>
  7. 7. POST-LIBERISATION PERIOD <ul><li>The 1:4 rule & licence procedure was frozen in 1990. </li></ul><ul><li>There was a heavy toll on the balance of the commercial bank on account of this policy decision. </li></ul><ul><li>In 2000 the Indian banking sector accounted for the rupee equivalent of $26,768 million as deposit & $10,834 million as loan outstanding . </li></ul>
  8. 8. CHALLENGES IN MARKETING OF BANKING SERVICES IN RURAL MARKET <ul><li>Lack of adequate financial market. </li></ul><ul><li>Low value of loans for poor sections. </li></ul><ul><li>Lack of collateral. </li></ul><ul><li>Low density of population. </li></ul><ul><li>Underdevelopment of rural infrastructure. </li></ul><ul><li>Lack of financial discipline. </li></ul><ul><li>Rural interest subsidy. </li></ul>
  9. 9. OPPORTUNITIES <ul><li>Sourcing of agricultural produce from India for global markets. </li></ul><ul><li>Govt. thrust. </li></ul><ul><li>Increasing corporate interest in agri-business. </li></ul><ul><li>Strengthening loan recovery. </li></ul><ul><li>Development of AEZs. </li></ul><ul><li>Lower level of NPA in rural areas. </li></ul><ul><li>Lower cost of labour , infrastructure & cost of living. </li></ul><ul><li>Large untapped market. </li></ul>
  10. 10. MARKETING STRATEGIES <ul><li>Developmental marketing. </li></ul><ul><li>Variable lending rate. </li></ul><ul><li>New product lines & delivery models. </li></ul><ul><li>Development of low priced customized ATMs. </li></ul><ul><li>ATM enabled kisan credit card. </li></ul>
  11. 11. MARKETING STRATEGIES contd…. <ul><li>Co-operative promotion. </li></ul><ul><li>Developing franchise model. </li></ul><ul><li>Partnership with NGOs for financing. </li></ul><ul><li>Simple and accessible loan procedure. </li></ul>
  12. 12. CONCLUSION <ul><li>All the statistics indicates there is a huge market for financial services in the rural areas. </li></ul><ul><li>The only thing that the banks have to do is to develop a rural specific marketing mix. </li></ul>

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