IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpfi/0512003.html
   My bibliography  Save this paper

Resurrection of Rural Credit Delivery System in Maharashtra, India

Author

Listed:
  • Deepak Shah

    (Gokhale Institute of Politics & Economics, B.M.C.C. Road, Deccan Gymkhana, Pune 411004, Maharashtra, India)

Abstract

The RFIs operating in Maharashtra have not only shown slower growth in their loan advances and other operational indicators during the period between 1991 and 2000 but also poor performance thereafter. The credit cooperatives in particular have shown significantly high NPAs in Maharashtra. In Maharashtra, Vidarbha region not only shows very low magnitudes of credit flow through cooperatives but also decline in share of loan for cotton crop vis-à-vis other field crops. One of the adverse effects of slowing down in loan advances for cotton crop is seen on the farming community of this region where a significant number of cotton growers have committed suicide either due to lack of loan advances to them or because of pressure created by various financial institutions in terms of recovery of loan despite crop failure. With a view to revive the agricultural credit delivery system, there is need to tackle twin problems facing the system, viz., growing NPAs with falling CD ratios and poor recovery performance of RFIs, aside from adopting innovative approaches like linking of SHGs and NGOs with mainstream financial institutions. In brief, the focus of rural credit delivery system should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development.

Suggested Citation

  • Deepak Shah, 2005. "Resurrection of Rural Credit Delivery System in Maharashtra, India," Finance 0512003, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpfi:0512003
    Note: Type of Document - doc; pages: 32
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0512/0512003.doc
    Download Restriction: no

    More about this item

    Keywords

    Resurrection of Credit Delivery in India;

    JEL classification:

    • G - Financial Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0512003. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.