Rural development aims to develop backward rural areas through government action plans focused on human resource development, land reforms, developing rural resources and infrastructure, employment generation, and poverty alleviation. Farmers face problems like indebtedness, low prices for agricultural produce, high input costs, poor storage and transportation, and lack of non-farm jobs. The government has taken initiatives to improve credit facilities for farmers such as nationalizing banks in 1969, establishing NABARD in 1982, expanding cooperative credit systems, and priority sector lending for production-oriented green revolution projects. The multi-agency rural credit structure includes NABARD, commercial banks, regional rural banks, cooperative institutions, land development banks, and self-help groups.

2. Rural
Development
What is Rural Development?
Rural development aims at developing backward rural areas through governmental
action plans. It is sought to be achieved through..
Development of human resource. It include literacy, education, skill development,
public health, sanitation etc
Land reforms
Development of productive resources of rural areas
Infrastructure development It include electricity, irrigation, marketing, transport
facilities
Employment generation & poverty alleviation programmes

3. Rural
Development
Farmers and agricultural community face problems like…
Indebtedness to village money lenders
Low prices of agricultural produce
High cost of agricultural inputs like fertilizers, insecticides etc
Poor storage and transportation facilities for agricultural
produce
Lack of non-farm employment opportunities
Casualisation of employment

4. Rural
Development
Village money lenders have been the most important
source for credit to farmers for a long time

5. Rural
Development
Government initiatives for better credit facilities to
farmers•Nationalisation of 14 commercial banks in
1969
•Setting up of NABARD in 1982
•Expanding the co-operative credit system
•Priority sector lending
•Green revolution : Diversification of rural
credit for production oriented lending through
Green Revolution

6. Rural
Development
Government initiatives for better credit facilities
to farmers
Nationalisation of 14 commercial banks
in 1969

7. Rural
Development
Government initiatives for better credit facilities to
farmers
Setting up of NABARD in 1982

8. Rural
Development
Government initiatives for better credit facilities to
farmers
Expanding the co-operative credit
system

9. Rural
Development
Government initiatives for better credit facilities to
farmers

10. Rural
Development
Government initiatives for better credit facilities to
farmers
Diversification of rural credit for production oriented
lending
through Green Revolution

11. Rural
Development
Multi Agency Rural Credit Structure
•NABARD (National Bank for Agriculture and
Rural Development) – apex bank for Rural
Credit
•Commercial Banks
•Regional Rural Banks (RRBs) – also known
as Gramin Banks
•Co-operative Credit Institutions
•Land Development Banks
•Self Help Groups (Micro credit)

12. Rural
Development
Multi Agency Rural Credit Structure
NABARD (National Bank for Agriculture and
Rural Development) – apex bank for Rural
Credit

13. Rural
Development
Multi Agency Rural Credit Structure
COMMERCIAL BANKS

14. Rural
Development
Multi Agency Rural Credit Structure
RURAL BANKS

15. Rural
Development
Multi Agency Rural Credit Structure
CO-OPERATIVE CREDIT INSTITUTIONS

16. Rural
Development
Multi Agency Rural Credit Structure
LAND DEVELOPMENT BANKS

17. Rural
Development
Multi Agency Rural Credit Structure
SELF HELP GROUPS

18. Rural
Development
Thank
you…….