Rural Banking And Overdues Management

Among inputs of agriculture, adequate and timely credit flow would be required to meet the investment needs of the farming community, especially to small, marginal and tribal farmers, for stepping up productivity and production. The demand for credit is ever increasing after the green revolution. The New Economic Policy, 1991, further liberalised the credit and interest rates to cater to the farming needs. Nonetheless, overdue syndrome became an agency-neutral in the country. It is a matter of great concern that the body of economy is punctured by frequent famines, droughts, cyclones, and storms and snowfalls are causing financial crises to the average farmer. Repayment performances will be positive once crop insurance becomes a reality. The latest empirical studies have shown that writing off of loans is not an ideal solution, the pragmatic solution would be to spread the irrigation component to ensure recovery of credit.