Summary |
The renewed emphasis on agricultural and rural development by the government of India would lead to a growing demand for different types of financial services in the rural areas. The present structure of rural credit may not be able to cater to the same. RRBs would be called upon to play a greater role in providing such services due to their rural character and feel. RRBs have to take over a larger share of credit disbursements calling for much larger resource mobilization, as also greater efforts for their institutional strengthening.
It was announced in the union budget for 2008-09 that the central government and the state governments had reached an agreement on the content of the package for revival of the long-term cooperative credit structure. The cost of the package was estimated at Rs. 3,074 crore, of which the central government’s share would be Rs. 2,642 crore.
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