Abstract
India’s rural financial system has undergone structural transformation from a purely agricultural financial system from the early days of independence to the present day model of commercialization of microfinance industries. This chapter reviews this period of transformation by dividing it into four phases, classified chronologically on the basis of dominance and availability of a particular source of financial instruments in rural India. The four phases are: (a) Dominance of cooperatives, (b) bank nationalization and dominance of commercial banks, (c) establishment of National Bank for Agriculture and Rural Development (NABARD) and bank-self-help group (SHG) linkage, and (d) introduction of microfinance.
The Indian peasant is born in debt, lives in debt and dies in debt.
Sir Malcolm Darling (1925).
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Biswas, S., Saha, A.K. (2014). Structural Transformation of Rural Finance in India: A Critical Review. In: Bhandari, A., Kundu, A. (eds) Microfinance, Risk-taking Behaviour and Rural Livelihood. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1284-3_1
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DOI: https://doi.org/10.1007/978-81-322-1284-3_1
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