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Impact Of Banking Sector On Agricultural Development Of India With Particular Reference To Maharashtra – Theoretical Perspective.

2190 words - 9 pages

Impact of Banking Sector on Agricultural Development of India with particular reference to Maharashtra - Theoretical perspective.Vivek V. Patil*1) Introduction :-Agriculture probably is the oldest profession for livelihood for major portion of the population in our country. Nature and type of farming , however, underwent conspicuous changes during the course of socio-economic transformation which has now attended technologically advanced condition.Agriculture occupies a very strategic position in Indian economy as it contributes about fifty percent towards the share in net domestic product at National level. Yet the productivity in the country is low and there is wide spread poverty in the villages. The transformation of agriculture is based on application of modern science and technology obliviously because agriculture has been since past it's own distinguishing features , distinctly different from other professions.Introduction of hybrid and high yielding variety is a significance landmark in the history of agricultural development in the country. Experiences have shown that acceptance of technological innovation is a matter of money and for want of adequate financial resources and assistance placed at the disposal of farming community , acceptance of advocated technology would be next to the impossible. Under such circumstances India has accorded highest priority to agricultural sector in her development process , which can be very well understood from plan outlay and investment for agriculture development in the country.The first rural credit survey indicated that in 1951-52 private money lenders were pre dominant source for credit supply and share of institutional agencies was hardly 7.5 percent of the borrowing in rural areas. By 1961-62 institutional agencies enlarged there share to about 19.7 percent which went on increasing significantly .__________________________________________________________________* Vivek Vilas Patil , Ph. D. scholar and faculty ( CHB ) ,Smt. L. R. T. College Of Commerce, Akola (M.S.),Paper for A One Day National Level Conference on 'Service Sector in India 'Banking system has made significant progress in rural economy after nationalization of major commercial banks in 1969. It has also played a pivotal role in promoting commercial agriculture. There were only 8,262 bank branches in June, 1969 when major commercial banks were nationalized. By the end of 1986 there number has risen to 53,378 since nationalization . It was proposed that there will be one bank branch within a distance of 10 km to serve every settlement with a population of 17,000 in rural and semi urban areas.Commercial farming has naturally received the maximum benefit from the spread of institutional banking in rural areas. At the end of September, 1985 , outstanding direct agricultural advances of public sector banks were 8,174 crores. According to an estimate the share might be around 40 percent or more now.2) Review of past literature :-Ray , G....

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