Commercial banks finance for rural development

Abstract

The participation of commercial banks in rural credit was started with the nationalization of imperial bank of India into State Bank of India in 1955. Initially it was to assist cooperative sector in term lending. Subsequently the facility was extended for direct credit to progressive farmers and tenant cultivators for purchase of inputs including labor, buying machinery and equipment, construction of farm structures and development of land e.g. levelling, boring tube-wells, etc. and the finance allied activities such as fruit cultivation, poultry farming, dairy farming etc.