Why Banking in rural India is not taking-off?

In addition to what is pointed out , one cannot but make a comparison between the huge list of formalities and red tape in case of banks as they have to comply to RBI Vs funds available at the drop of a hat from the money lender esp for non productive purpose and the long term fallout thereof, coupled with NPAs of loans taken by farmers and yes of course two more aspects the trust built by the nest door money lender Vs the illiterate farmers even if at very high interest rate as well as the penetration of banks albeit the rural banks have made some inroads into the rural areas . Still a lot needs to be achieved.
To my mind microfinance, if it is able to win the trust then the illiteracy factor can be compensated in the long term by the new gen literate.
 
statistically cos ir rural INDIA there are peolple who dont believe on banks..and some of them dont know the procedures as they are illiterate...
 
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:SugarwareZ-078:
Rural ppl are illiterate.So they fear to go to the banks which looks odd to them.They are afraid that they can't understand the policies of the banks thereby they will end-up loosing the money.
 
banking is not taking place due to the people of the villages.They don't believe in taking loans.They dont know what Credit means.So,its urgent to make them aware of the banking industries and its terms.Banks should take actions and do promotion in Rural areas as well.
 
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