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women in India have become member buffer stocks of grains. However, all is in54lakhwomenSHGs.Inrecentyears, not well with our banking system. about ` 10-15,000 per SHG and With the possible exception of the another `2.5 lakhs per SHG as a commercial banks, other formal institutions have failed to develop a Community Investment Support Fund (CISF)areprovidedaspartofrenovating culture of deposit mobilisation — fund to take up self employement for lending to worthwhile borrowers and incomegeneration.Suchcreditprovisions effective loan recovery. Agriculture loan aregenerallyreferredtoasmicro-credit default rates have been chronically high. Why farmers failed to pay back programmes. SHGshavehelpedinthe empowermentofwomen.Itisallegedthat loans? It is alleged that farmers are the borrowings are mainly confined to deliberately refusing to pay back loans. consumption purposes. Why are What could be the reasons? borrowers not spending for productive Thus,theexpansionandpromotion oftheruralbankingsectorhastakena purposes? backseatafterreforms.Toimprovethe Rural Banking — a Critical situation,Inrecentyears,alltheadults Appraisal: Rapid expansion of the areencouragedtoopenbankaccounts banking system had a positive effect on as a part of a scheme known as Jan- rural farm and non-farm output, Dhan Yojana. Those bank account income and employment, especially holderscangetRs.1-2lakhaccidental after the green revolution — it helped insurance coverage and overdraft farmers to avail services and credit facilities for Rs. 10,000 and get their facilities and a variety of loans for wagesiftheygetanygovernment-related meeting their prodution needs. jobs and works under MNREGA (now Famines became events of the past; knownasViksitBharat–Guaranteefor we have now achieved food security Rozgar and Ajeevika Mission [Gramin] which is reflected in the abundant [VB-G RAM G]); old age pension and Work These Out Ø In the last few years, you might have taken note — in your neighbourhood if you are living in rural areas or read in the newspapers or seen on TV — of farmers commiting suicides. Many such farmers had borrowed money for farming and other purposes. It was found that when they were unable to pay back due to crop failure, insufficient income and employment opportunities, they took such steps. Collect information relating to such cases and discuss in the classroom. Ø Visit banks that cater to rural areas. They may be primary agricultural cooperative banks, land development banks, regional rural banks or district cooperative banks. Collect details such as how many rural households borrowed from them, amount generally borrowed, kinds of collateral used, interest rates and dues. Ø If farmers who borrowed from cooperative banks could not pay back due to crop failure and other reasons, their loans should be waived otherwise they may take drastic decisions like committing suicides. Do you agree? RURAL DEVELOPMENT 79 Reprint 2026-27