Panchayati Raj Systems and Rural Administration.pdf

Unit-3: Panchayati Raj and Rural
Administration
Prepared by:
Ankur Sachdeva
Assistant Professor, ME

What is Administration
• Administere: care for or look after the people to manage the affairs.
• Administration refers to the process of running an organisation.
• This includes creating rules & regulations, making decisions, management of
operations, creating organisation of staff/employees/people to direct activities
towards achieving a common goal or objective.
• Administration may be defined as “group activity which involves
cooperation and coordination for the purpose of achieving desired
goals or objectives”
• Administration is the direction, coordination an persons to achieve
some purposes or objectives.”
Ankur Sachdeva, Assistant Professor, ME

Functions of an Administration
➢ Make the policies of an organization
➢ It is a determinative function
➢ It is a top-level activity.
➢ It consists of owners who invest capital in and receive profits from an
enterprise
➢ Its decisions are influenced by public opinion, government policies,
social, and religious factors
➢ Planning and organizing functions are involved in it.
➢ It needs administrative rather than technical abilities.

Objectives of Public Administration
➢ Preservation of polity
➢ Maintenance of stability and order
➢ Institutionalisation of Socio-Economic changes
➢ Management of large scale commercial services
➢ Ensuring growth and economic development
➢ Protection of the weaker sections of society
➢ Formation of public opinion
➢ Influencing Public policies.

Bureaucracy
• Rural development is a very important aspect of development progress in a
country.
• Development of the country has to begin from the rural or villages and it depends
on the development of its villages.
• For that every government makes the development policies and gives the authority
to the bureaucratic organizations to implement these policies including the grass
root level.
• A bureaucracy is an administrative, government, or social system with a
hierarchical structure and complex rules and regulations.

Bureaucrats
• Rural Development Officer,
• Women Development Officer,
• Cultural Officer,
• Skill Development Officer,
• Child Care Officer,
• Early Childhood Development Officer,
• Counselling Officer,
• Child Rights Promoting Officer,
• Housing Officer,
• Sports Officer,
• Agricultural Officer,
• Industrial Officer and
• Fishing Officer work
Rural Development Plans:
Health, education, environmental
protection, women development,
occupational training, rural
agriculture, vet nary, self-
employment, cottage industry,
microcredit, entertainment
programs, sports, ethics, and
projects for special needs people

Administrative Structure

Panchayat and Panchayati Raj System
PANCHAYAT
• Panchayat is the name of the local
government system in India.
• Panchayat means a group of "Five
Persons".
• In simple words, a Panchayat is a
council of elders representing a
village.
• The Panchayat system covers the
village level (Gram Panchayat),
clusters of villages (block
Panchayat) and the district level
(District Panchayat).
PANCHAYATI RAJ SYSTEM
• Panchayati Raj is a system of
governance in which gram panchayats
are the basic units of administration.
• Panchayati Raj is a form of
government at the village level where
each village is responsible for its own
activities.
• The Amendment Act of 1992 contains
provision for passing the powers and
responsibilities to the panchayat for
preparation of plans for economic
development and social justice.

Some Important Terms
• Panch: An assembly of elders who settled the disputes within the limit of
caste/customs.
• Panchayat: An assembly of elected persons of the village. Village bodies were the
lines of contact with higher authorities on matters affecting to the village.
• Democracy: The word Democracy derived from Greek language Democ means
the people and Cracy means rule of. It is leading of the people, by the people &
for the people.
• Decentralization: Devolution of central authority among local units close to the
area served.
• Democratic decentralization: means where authority develops by the process on
people’s institution and act as local self-government.

Specific Objectives of Panchayati Raj
1. Assistance to the economically weaker sections of the community.
2. Cohesion and cooperative self help in the community.
3. Development of cooperative institutions.
4. Development of local resources including the utilization of manpower.
5. Production in agriculture as the highest priority in planning.
6. Progressive dispersal of authority and initiative both vertically and horizontally
with special emphasis on the role of voluntary organizations.
7. Promotion of rural industries.
8. Understanding and harmony between the people’s representatives and people
servants through comprehensive training/education and a clear demarcation of
duties and responsibilities.

Panchayati Raj in India
• Mahatma Gandhi advocated Panchayati Raj, a decentralized form of government.
• It is the oldest system of local government in the Indian sub continent.
• The first organized effort to solve the problem of rural India was made through the
Community Development Programme in the year 1952 and National Extension Service in
1953.
• On the completion of first five years of the CDP, the planning Commission appointed a
high-ranking study committee headed by Balwant Rai Mehta, Chief Minister of
Gujarat.
• This team pointed out both positive results and inadequacies in the implementation of the
programme.
• This committee recommended Panchayati Raj.
• The study team made a significant recommendation with implementation of a
programme.
• According to it there should be effective administrative decentralization for the
implementation of the programme.

• The decentralized administration was to be placed under the control of selected and
integrated local self-government system ordinarily of 3 levels bodies from village
level to block level and then to district level.
• This democratic decentralized system was named as “Panchayat Raj”.
• This system was adopted by state governments during the 1950s and 60s as laws
were passed to establish panchayats in various states.
• The state of Madras tried this as a pilot project as early as 1957.
• In 1958, Andhra Pradesh state had twenty such pilot projects.
• Based on the success in these it was the state of Rajasthan which became the pioneer
to bring the whole state under democratic decentralization on October 2, 1959.
• It was implemented in Gujarat on April 1, 1963.

• It also found backing in Indian constitution with the 73rd Amendment
in 1992 to accommodate the idea.
• In the history of Panchayati Raj in India, on 24th April, 1993, the
constitutional (73rd Amendment) Act 1992 came into force to provide
constitutional status to the Panchayati Raj institutions.
• Currently, the Panchayati Raj system exists in all the states except
Nagaland, Meghalaya and Mizoram and the all Union Territories
except Delhi.

List of Committees for Recommending

Recommendations of Balwant Rai Mehta Committee
• The Balwant Rai Mehta Committee, headed by MP Balwant Rai Mehta, was a
committee appointed by the Government of India in January 1957 to examine the
work of the Community Development Programme (1952) and the National
Extension Service (1953), to suggest measures to improve their work.
• The committee's recommendation was implemented by NDC in January 1958, and
this set the stage for the launching of Panchayati Raj Institutions throughout the
country.
• The committee recommended the establishment of the scheme of ‘democratic
decentralization’, which finally came to be known as Panchayati Raj.
• This led to the establishment of a three-tier Panchayati Raj system: Gram
Panchayat at the village level, Panchayat Samiti at the block level, and Zila
Parishad at the district level.

Reservation for women in Panchayati Raj Institutions in India
• On August 27, 2009, the Union Cabinet of the Government of India approved 50%
reservation for women in Panchayati Raj Institutions (PRI).
• The Indian states Andhra Pradesh, [[Bihar(1st state among all to reserve 50% of
seats for women)]], Chhattisgarh, Himachal Pradesh, Jharkhand, Kerala,
Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Sikkim, Tamil
Nadu, Tripura, West Bengal and Uttarakhand have implemented 50% reservation
for women in PRIs.
• The majority of candidates in these Panchayats are women. Currently 100% of
elected members in Kodassery Panchayat in Kerala are women.

Levels/Tiers of Panchayati Raj Institutions

Two/Three Tier System of Panchayati Raj In India
• The states of Goa, Jammu and Kashmir, Mizoram, Meghalaya,
Nagaland and Sikkim have two-tier panchayats- one at the village
level and the second at the Zila or District level.
• In Jammu and Kashmir, block is the second level.
• In all other states Panchayati Raj is a three-tier system- village as first
level, block or janapad as second level and zila or district as the third
level.

Village Level Panchayat
• It is a local body working for the welfare of the village.
• Panchayati Raj is a system of governance in which Gram Panchayat are the basic
units of administration.
• The number of members usually ranges from 7 to 31; occasionally, groups are
larger, but they never have fewer than seven members.
• The council leader is named Sarpanch in Hindi, and each of the five members is a
Gram Panchayat Sadasya or Panch.
• In such a system, each villager can voice his opinion in the governance of his
village.
• Decisions are taken without long legal procedure.

Functions of Gram Panchayat
1. Preparation of Annual Plans for the development of the village Panchayat area.
2. Preparation of Annual Budget of Village Panchayat.
3. Mobilization of relief in natural calamities.
4. Removal of encroachments on public properties.
5. Organizing voluntary labours and contribution for community works.
6. Maintenance of essential statistics of villages.
7. Such other development works as may be entrusted.
8. Service or developmental function, such as promotion of education, health, agriculture, etc.
9. Representative function, where the main role is to voice and represent the opinion;
10. Regulatory and administrative functions, which consists of regulating the conduct of individuals
and institutions and also collection of taxes.

Sources of Revenue in Village Panchayat
• All money received by the Gram Panchayat like contribution or grants
made by the State Government, Union Government, Zila Parishad and all
sums received by the panchayat in the form of taxes, rates, duties, fees,
loans, fines and penalties, compensation, court decree, sale proceeds and
income from panchayat property etc. go into that fund.
• Village Panchayats have been empowered to levy taxes or fees on subjects
like houses and buildings, professions, trades, callings and employments,
fees on registration of vehicles, fairs and melas, sanitary arrangements,
water tax, lighting tax, tax on sale of firewood, tax on slaughter houses,
private fisheries, license fee on tea stalls, hotels or restaurants, carts,
carriages, boats, rickshaws etc.

Block Level Panchayat
• The block-level institution is called the Panchayat Samiti.
• Panchayat samiti is a local government body at the tehsil or Taluka level in India.
• It works for the villages of the Tehsil or Taluka that together are called a
Development Block.
• The Panchayat Samiti is the link between the Gram Panchayat and the district
administration.
• The samiti is elected for 5 years and is headed by the chairman and the deputy
chairman.

Functions of Gram Panchayat
a) Preparation of the annual plans in respect of the schemes entrusted to it
under the relevant Act or by the government or the Zila Panchayat and
submission thereof to the Zila Panchayat within the prescribed time for
integration with the district plan.
b) Consideration and consolidation of the annual plans of all Gram
Panchayats in the Taluk and submission of the consolidated plan to the Zilla
Panchayat.
c) Preparation of annual budget of the taluk and its submission within the
prescribed time to the Zilla Panchayat.
d) Performing such functions and executing such works as may be entrusted
to it by the government or the Zilla Panchayat.
e) Providing relief to victims of the natural calamities.
f) Pool technical expertise, both government and non-government at the
Block level and provide technical services to the Gram Panchayats

Sources of Revenue in Block Panchayat
• All State legislations provide for the creation of Panchayat/ Block
Samiti Fund like the Consolidated Fund of the State.
• All money collected by the Samiti goes into that fund.
• These are grants given by the State Government or Union
Government, donations received, income from properties owned by
the Samiti, all taxes, fees, tolls etc. levied by the Samiti, any share of
the land revenue or taxes levied by the State Government and
assigned to the Samiti, part of the income of the Zila/ District
Parishad assigned to the Samiti, all loans raised by the Samiti etc.

District Level Panchayat
• At district level, panchayati raj system is called as "Zila Parishad".
• It looks after the administration of the rural area of the district and its office is
located at the district headquarters.
• It is headed by the "District Collector" or the "District Magistrate“ or the "Deputy
Commissioner".
• The Chairman of all the Panchayat Samitis form the members of Zila Parishad.
• It is the link between the State Government and the Panchayat Samiti.
• The major functions of a district level panchayat is to provide essential services
like supply of improved seeds, running schools, PHC's and hospitals, construction
of bridges and roads etc.

Functions of Zila (District Level) Panchayat
a) Preparation of development plan for the district.
b) Compilation of administration reports of Village Panchayats and
Panchayat Union Councils of the district and preparation of Annual
Report for the District.
c) Planning and review of Agriculture, Land Development, Animal
Husbandry, Dairy, Poultry, Fisheries and Rural Industries etc.
d) Planning and review of rural housing programmes particularly
housing for SC/STs.
e) Identification of major water supply schemes

Sources of Revenue in District Level Panchayat
The sources of income of the Zila Parishad / District Panchayat are :
i) Grants-in-aid given by the State Government and the Union Government
(general or for any particular project)
ii) Donations and incomes like rent or lease or sale proceeds of the properties of
the Parishad.
iii) Toll, fees or cess imposed on bridges, ferries, entertainment, fairs, haats etc.
iv) Share of the land revenue assigned to the parishad.
v) Several states like U.P., Punjab, Manipur, Maharashtra etc. have empowered
them to levy taxes on any matter on which Panchayats at the lower levels are
empowered to do.
vi) Loans raised by it against the security of its properties.
vii) Contributions made by Panchayat Samitis or any other local authority.

Challenges with PRI System
• Lack of Effective Devolution:
• Devolution of power and authority to panchayats has been left to the discretion of states.
• Important subjects like fuel and fodder, non-conventional energy sources, rural electrification
including distribution of electricity, non-formal education, small scale industries including
food processing industries, technical training, and vocational education have not been
devolved in certain states.
• Insufficient Grants/Funds:
• Despite the constitutional empowerment, the local bodies face problems of inadequate
finance to carry out various activities assigned to them.
• In most of the states, most of the GPs are found reluctant to raise their own source of revenue
(OSR). Only a few GPs are able to generate OSR in the form of tax or non-tax revenue by
renting shops, house tax and clean water fee.
• Infrastructural Challenges:
• Some of the GPs do not have their own building and they share space with schools, anganwadi
centre and other places.
• Some have their own building but without basic facilities like toilets, drinking water, and electricity
connection.
• While GPs have internet connections, they are not functional in many cases. For any data entry
purposes, panchayat officials have to visit Block Development offices which delay the work.

Challenges with PRI System
• Lack of Support Staff:
• Severe lack of support staff and personnel in panchayats, such as secretary, junior
engineers, computer operators, and data entry operators in a Gram Panchayat
• Lack of Convergence of Various Government Programmes:
• There is a clear lack of convergence of various development programmes of the
Centre and state governments.
• For example, roads in two different patches are constructed utilizing two different
sources of funding (e.g. Fourteenth Finance Commission and MPLAD), but it is
difficult to find one large activity with funding from multiple sources.
• Different guidelines by different departments are cited as a major constraint for lack
of convergence of activities.

Structure of Rural Finance

Domestic Institutional Sources:
• Domestic Institutional sources of rural credit include the government,
the Reserve Bank of India, National Bank for Agriculture and Rural
Development (NABARD), Cooperative Banks, Commercial Banks (CB’s)
Regional Rural Banks and Self-Help Groups (SHG).

Government (Central & State):
• The government in the past has been, still is, and in future will the
most important source of funds for rural development.
• At the national level, the Union Ministry of Finance is responsible for
mobilization and administration of financial resources in rural
development.
• It also regulates the expenditure government, including transfer
disburse public funds has been divided under the constitution
between union and state governments.
• Power to raise and disburse public funds has been divided under the
constitution between union and state governments.

Reserve Bank of India
• The RBI was assigned a crucial role in the scheme of integrated credit and
in the building up of the co-operative credit organization.
• The RBI’s role was not only a conventional central banker but it was an
active agency that takes all necessary measures for enabling the
cooperative system to provide a growingly larger share of rural credit.
• The adoption of special programs for increasing agricultural production and
the spread of green revolution based largely on intensive use of fertilizers,
water, better seeds and machine power have enhanced the RBI’s
responsibilities further.
• The RBI had also started offering greater financial assistance to
cooperatives for credit facilities to small farmers and other weaker sections
and four minimizing disparities in flow of credit to various regions.

Domestic Non-Institutional Sources

Source of Funds by Foreign:

Non-Governmental Organizations (NGOs)
• In India, the scope of development is not narrow but very wide, as it includes not just the
economic development but the growth on social front, quality of life, empowerment,
women and child development, education and awareness of its citizens.
• The task of development is so huge and complicated that just implementing government
plans is not sufficient to fix the problem.
• To achieve this, a holistic vision and collaborative efforts involving various departments,
agencies and even NGOs is required.
• Owing to such a great need, the number of NGOs in India is increasing rapidly and, at
present, there are about 25,000 to 30,000 active NGOs in India.
• An NGO's orientation refers to the type of activities it takes on. These activities
might include human rights, environmental, or development work.
• An NGO's level of operation indicates the scale at which an organization works,
such as local, regional, national or international

Non-Governmental Organizations (NGOs)
• Non Governmental Organizations with their advantage of Non Rigid, locality
specific , felt need based, beneficiary oriented and committed nature of service
have established multitude of roles which can effect rural development.
• NGO's in recent days have been emerged as an important element of
contemporary rural society and alike between in the grass roots and civil society.
• The voluntary sector has contributed significantly in reducing poverty, deprivation
or discrimination and exclusion through awareness, social mobilization, service
delivery and training.
• They are the effective non political link between government and common people

Objectives of Non-Governmental Organizations (NGOs)
• NGO's aim at improving the standard of living and value systems of rural people.
• They provide financial assistance for people to develop themselves.
• NGO's play a important role in empowering the rural poor such as women, Children's etc.
• NGO's promote people centered development through education program.
• NGO's countervail the debilitating aspects of development and democracy in rural areas.
• NGO's put effort for the development of civic amenities in rural areas.
• It encourages and implements the use of new technologies in rural areas.
• NGO's play an effective role in poverty alleviation and employment generation.
• They fight against corruption and anti-social practices.
• NGO's promotes development of agriculture and small scale industry.
• It promotes ecology and tribal development and environmental protection and education

NGOs in India
• The growth of Non Governmental Organizations in India had roots in the pre-
independence period and in the social reform movements of the late 19th century.
• During this period a number of individuals and associations were involved in
social service, such as helping the poor and the destitute, as well as social reform
against practices such as blind beliefs which are availed in rural areas.
• Christian missionary groups also contributed to the growth by setting up a network
of hospitals, schools and welfare services for the poor.
• The Gandhian approach clubbing village development programs with social
reform contributed largely to the growth of the voluntary sector.
• According to PRIA (Society for participatory Research in Asia, New Delhi,
110062) survey it is estimated that there are 1.2 million Non Governmental
Organizations in India .

NGOs in India
• The Non Profit Organizations sector in India is predominantly rural based.
• More than half of the NGO's in the country are based in rural areas.
• Of course , several NPO's( Non Profit Organizations ) located in Urban areas serve
rural communities.
• Nearly half of the NGO's are unregistered.
• In India the percentage of registered NGO’s is highest in Maharashtra (74%) and
lowest in Tamil Nadu (47%).
• An overwhelming majority of these registered NGO's are registered under Society
Registration acts.
• Most of the unregistered NGO's are in Rural areas but even in urban Delhi, nearly
30% of NGO's are not legally registered

Hurdles for NGOs
• A major problem that NGOs are facing in India is their dependency upon government
funds or external donations.
• With this dependency, NGOs, are less flexible in carrying out their task as most of the
tasks depend upon funds.
• Moreover, the structures of NGOs have become bureaucratic in nature leading to a
decreased effectiveness in the overall development.
• Then the traditional thinking of rural people, their poor understanding, and low level of
education for comprehending new technology and efforts, lack of awareness are people
related hurdles that NGOs are facing.
• Villages also lack infrastructure facilities like water, electricity, educational institutes,
communication facilities that leads to their slow development.
• Apart from these, there are certain problems like economics such as high cost technology,
underprivileged rural industries, social and cultural differences, conflicts between
different groups, administrative problems like political interference, lack of motivation
and interest act as hurdles on the way to rural development in India

Major role seen for NGO’s in rural development
• As economic reform and liberalization saw the Government vacating several areas
to let private sector entrepreneurship flourish and contribute to the high growth
rate of the economy in recent years, a similar paradigm shift is needed to
transform NGOs from their dependence on aid and grants from within and outside
for transforming the rural scenario in the country.
• This is sought to be achieved for the NGOs through engaging them in micro-
finance, micro insurance, and micro-entrepreneurship activities for the overall
development of the rural areas and to promote the welfare of the people of rural
India,

What are Self-Help Groups?
• Self-Help Groups (SHGs) are informal associations of people who choose to come
together to find ways to improve their living conditions.
• It can be defined as self governed, peer controlled information group of people
with similar socio-economic background and having a desire to collectively
perform common purpose.
• Villages face numerous problems related to poverty, illiteracy, lack of skills, lack
of formal credit etc.
• These problems cannot be tackled at an individual level and need collective
efforts.
• Thus SHG can become a vehicle of change for the poor and marginalized.
• SHG rely on the notion of “Self Help” to encourage self-employment and poverty
alleviation.

Self-Help Groups in India
• Self- help groups (SHGs) play today a major role in poverty alleviation in rural
India.
• A Growing number of poor people (mostly women) in various parts of India are
members of SHGs and actively engage in savings and credit (S/C), as well as in
other activities (income generation, natural resources management, literacy, child
care and nutrition, etc.).
• The S/C focus in the SHG is the most prominent element and offers a chance to
create some control over capital, albeit in very small amounts.
• The SHG system has proven to be very relevant and effective in offering women
the possibility to break gradually away from exploitation and isolation

Concept of Self-Help Groups
• The concept of SHG services the principle, ‘by the women, of the women and for the women’.
• Self help groups are voluntary associations of people with common interests formed to achieve
collective social and economic goals. Such groups are organized for mutual help and benefit.
• It is formed democratically without any political affiliations.
• They may comprise of 15–20 women and/or men, although they generally consist exclusively of
women members.
• In India, more than 90 per cent groups are formed by women is done at micro or group level.
• The initial operations of SHGs start with collecting savings from members.
• These groups inculcate the habit of thrift among the members. By collecting small saving huge
amount can be raised.
• These groups advance loans to the needy members. The total funds owned by the group are thus
circulated in the form of loan among the members.

Need of Self-Help Groups
• Self help groups are necessary to overcome exploitation, create confidence for the
economic self-reliance of rural people, particularly among women who are mostly
invisible in the social structure.
• These groups enable them to come together for common objective and gain
strength from each other to deal with exploitation, which they are facing in several
forms. Groups become the basis for action and change.
• It also helps buildings of relationship for mutual trust between the promoting
organization and the rural poor through constant contact and genuine efforts.
• Self help group disburses microcredit to the rural women for the purpose of
making them enterprising women and encouraging them to enter into
entrepreneurial activities.
• SHGs enhance equality of status of women as participation, decision-makers and
beneficiaries in the democratic, economic, social and cultural spheres of life.

Functions of Self-Help Groups
• To mobilize the resources of the
individual members for their
collective economic development.
• To uplift the living conditions of the
poor.
• To create a habit of savings,
utilization of local resources.
• To mobilize individual skills for
group’s interest.
• To create awareness about right.
• To assist the members financially at
the time of need.
• Entrepreneurship development.
• To identify problems, analyzing and
finding solutions in the groups.
• To act as a media for socio-economic
development of village.
• To develop linkage with institution of
NGOs.
• To organize training for skill
development.
• To help in recovery of loans.
• To gain mutual understanding, develop
trust and self-confidence.
• To develop leadership qualities.
• To build up teamwork.
• To use it as an effective delivery
channel for rural credit.

Benefits of Self-Help Groups
• Social integrity – SHGs encourages collective efforts for combating practices like dowry, alcoholism
etc.
• Gender Equity – SHGs empowers women and inculcates leadership skill among them. Empowered
women participate more actively in gram-sabha and elections.
• There is evidence in this country as well as elsewhere that formation of Self-Help Groups has a
multiplier effect in improving women’s status in society as well as in the family leading to improvement
in their socio-economic condition and also enhances their self-esteem.
• Pressure Groups – their participation in governance process enables them to highlight issues such as
dowry, alcoholism, the menace of open defecation, primary health care etc. and impact policy decision.
• Voice to marginalized section – Most of the beneficiaries of government schemes have been from
weaker and marginalized communities and hence their participation through SHGs ensures social
justice.
• Financial Inclusion – Priority Sector Lending norms and assurance of returns incentivize banks to lend
to SHGs. The SHG-Bank linkage programme pioneered by NABARD has made access to credit easier
and reduced the dependence on traditional money lenders and other non-institutional sources.

Benefits of Self-Help Groups
• Improving efficiency of government schemes and reducing corruption through
social audits.
• Alternate source of employment – it eases dependency on agriculture by providing
support in setting up micro-enterprises e.g. personalized business ventures like
tailoring, grocery, and tool repair shops.
• Changes In Consumption Pattern – It has enabled the participating households
to spend more on education, food and health than non-client households.
• Impact on Housing & Health – The financial inclusion attained through SHGs
has led to reduced child mortality, improved maternal health and the ability of the
poor to combat disease through better nutrition, housing and health – especially
among women and children.
• Banking literacy – It encourages and motivates its members to save and act as a
conduit for formal banking services to reach them.

Challenges of SHG
• Lack of knowledge and proper orientation among SHG-members to take up
suitable and profitable livelihood options.
• Patriarchal mindset – primitive thinking and social obligations discourages
women from participating in SHGs thus limiting their economic avenues.
• Lack of rural banking facilities – There are about 1.2 lakh bank branches and
over 6 lakh villages. Moreover, many public sector banks and micro-finance
institutions are unwilling to provide financial services to the poor as the cost of
servicing remains high.
• Sustainability and the quality of operations of the SHGs have been a matter of
considerable debate.
• No Security – The SHGs work on mutual trust and confidence of the members.
The deposits of the SHGs are not secured or safe
• Only a minority of the Self-Help Groups are able to raise themselves from a level
of micro-finance to that of micro-entrepreneurship.

CAPART
• Full form of CAPART: COUNCIL FOR ADVANCEMENT OF PEOPLE’S
ACTION & RURAL TECHNOLOGY
• Main Objectives of CAPART:
• To encourage, promote and assist voluntary action for the implementation of
projects intending enhancement of rural prosperity.
• To strengthen and promote voluntary efforts in rural development with focus
on injecting new technological inputs;
• To act as a catalyst for the development of technology appropriate for rural
areas.
• To promote, plan, undertake, develop, maintain and support projects/schemes
aimed at all-round development, creation of employment opportunities,
promotion of self-reliance, generation of awareness, organization and
improvement in the quality of life of the people in rural areas through
voluntary action.

Schemes/programmes under CAPART
• Jawahar Rozgar Yojana (Now renamed as Gram Samridhi Yojana (JGSY)
• Development of Women & Children in Rural Areas (DWCRA)
• Swarnjayanti Gram Swarozgar Yojana (SGSY)
• Integrated Rural Development Programme (IRDP)
• Million Well Scheme (MWS)
• Accelerated Rural Water Supply Programme (ARWSP)
• Central Rural Sanitation Programme (CRSP)
• Indira Awas Yojana (IAY)
• Panchayati Raj (PR)
• Promotion of Voluntary Action in Rural Development (PC)
• Organization of Beneficiaries (OB) and Social Animators Training (SAT)
• Advancement of Rural Technology Scheme (ARTS)
• Watershed Development

DRDA
• Full form of DRDA: District Rural Development Agency
• District Rural Development Agency (DRDA) has traditionally been the principal
organ at the District level to oversee the implementation of different anti-poverty
programmes.
• Since its inception, the administrative costs of the DRDAs were met by way of
setting apart a share of the allocations for each programme.

NABARD
• NABARD is set up as an apex Development Bank with a mandate for facilitating
credit flow for promotion and development of agriculture, small-scale industries,
cottage and village industries, handicrafts and other rural crafts.
• It also has the mandate to support all other allied economic activities in rural areas,
promote integrated and sustainable rural development and secure prosperity of
rural areas.
• In discharging its role as a facilitator for rural prosperity NABARD is entrusted
with
• Providing finance to lending institutions in rural areas
• Bringing about or promoting institutional development and
• Evaluating, monitoring and inspecting the client banks

Panchayati Raj Systems and Rural Administration.pdf

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Panchayati Raj Systems and Rural Administration.pdf