Rbi Functions in India

Topics: Microfinance, Debt, Personal finance Pages: 2 (674 words) Published: June 24, 2013
Summary on Persistence of Informal Credit in Rural India: Evidence from “All- India Debt and Investment Survey” and Beyond This paper has been authored by Dr. Narayan Chandra Pradhan. Rural Credit market in India is characterized by the coexistence of both formal and informal sources of finance and the market is fragmented. In this paper author attempt to describe the credit supplied by non-institutional agencies as informal while institutional agencies as formal sources of credit. RBI conducted both All-India Rural credit survey 1951-52, RBI(1954), and All-India Rural Debt and Investment survey 1961-62, RBI(1965) and NSSO conduct four rounds of All-India Debt and Investment Survey from 1971-72 to 2002-03. These papers also describe for a new financial sector initiatives in the form of prompt and innovative policy responses to prioritize financial inclusion, financial education as well as financial literacy. Pre nitiatives by RBI

* Initially in 1951 RBI was active in pursuing the cooperative movement through variety of initiatives * Formation of Agricultural Refinance Corporation(1963), nationalization of major commercial Banks(1969), Regional Rural Bank(1975), and formation of National Bank for Agriculture and Rural Development(NABARD) in 1982 * In 1990 and 2000, the concept of Microcredit along with MFI- and SHG Bank linkage models has evolved. All India Debt and Investment Survey Report

* All India Debt and Investment Survey (1951-52) its main objective is to generate reliable estimates on assets, liabilities and capital expenditure of the household sector, but it is conducted only in rural areas. * The share of institutional credit agencies in the outstanding cash dues of the rural households at the all-India level increased from 29 per cent in 1971 to 61 per cent in 1981; the pace of increase was arrested subsequently to 64 per cent in 1991. During 1990s, the share declined and reached 57 per cent in 2002 Changes (1971-2002)

State level:...
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