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Rural Credit Delivery System in Maharashtra: Some Emerging Issues

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Author Info
Shah, Deepak

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Abstract

An investigation into rural credit delivery system in Maharashtra shows slower growth in institutional finances through commercial banks, credit cooperatives, RRBs and LDBs, particularly during the decade of 1991-2000, which is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, the entire rural credit delivery system is reduced to a moribund state. High transaction costs and poor repayment performance are the twin root causes of the moribund state of rural credit delivery system. With a view to revive the agricultural credit delivery system, there is need to adopt innovative approaches like linking of Self-Help Groups (SHGs) and Non-Government Organizations (NGOs) with mainstream financial institutions. The revival of rural credit delivery system of Maharashtra also depends on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development of the state.

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File URL: http://mpra.ub.uni-muenchen.de/3859/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3859.

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Date of creation: 05 Jul 2007
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Publication status: Published in Artha Vijnana March - June, Nos. 1&2.Volume 47(2005): pp. 127-148
Handle: RePEc:pra:mprapa:3859

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Related research
Keywords: Rural Credit Delivery;

Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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This page was last updated on 2009-12-15.


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