Nabard can help weather rural financial distress

Abstract

The financial distress in the rural sector, especially borne by the farmers and reflected in farmer suicides, is a matter of concern for the nation. The rural economy housing nearly two-thirds of the population is vital for the development of the nation as it not only supplies food for consumption but also provides a market for industrial output. The rural people, due to lack of awareness of financial instruments, tend to borrow from different sources and then come under financial distress, on crop failure. In the next few years, the rural economy is expected to witness a revolution in availability of financial instruments mainly because of three recent schemes announced by the government. First, the prime minister’s Jan Dhan Yojana with a provision for insurance. Second, the gold monetization scheme announced in the budget by the finance minister. Finally, the Micro Units Development Refinance Agency (MUDRA) Bank which will provide credit to small entrepreneurs.

These three schemes are expected to unleash the creative potential in the rural areas and provide easy finance to convert ideas into manufactured products for the markets. India truly seems to be at the cusp of rural revolution and high growth, but there is a need to coordinate and monitor the developments in the rural sector to ensure a smooth transition. Read more at: https://www.newindianexpress.com/opinions/2015/may/14/Nabard-Can-Help-Weather-Rural-Financial-Distress-760241.html