abhishreshthaa
Abhijeet S
The government was of the view that multi-agency approach to rural credit was the real solution to the emancipation of small farmers from the clutches of the money-lenders. But withing a short period, number of problems have surfaced such as:
a) There was no coordination between different agencies operating in the same area and, as a result, there was multiple financing, over-financing in some areas and under-financing in others.
b) Despite the adoption of lead bank scheme and district credit plans, the different agencies often failed to formulate and develop meaningful agricultural credit programmes in given blocks and districts.
c) Despite guidelines issued by RBI, different agencies adopted different procedures and policies in the matter of providing loans and their recover. The result was unnecessary competition among the different agencies.
d) There were practical problems in the recovery of loans when different agencies had lent to the same person against the same securities. Ultimatlely, there were heavy overdues.
a) There was no coordination between different agencies operating in the same area and, as a result, there was multiple financing, over-financing in some areas and under-financing in others.
b) Despite the adoption of lead bank scheme and district credit plans, the different agencies often failed to formulate and develop meaningful agricultural credit programmes in given blocks and districts.
c) Despite guidelines issued by RBI, different agencies adopted different procedures and policies in the matter of providing loans and their recover. The result was unnecessary competition among the different agencies.
d) There were practical problems in the recovery of loans when different agencies had lent to the same person against the same securities. Ultimatlely, there were heavy overdues.