The Role of Regional Rural Banks in the Economic Development of Northeast India: A Literature Review
Main Article Content
Abstract
Financial institutions are vital to the economic development of nations, particularly in rural areas. India, with its predominantly rural landscape, requires focused efforts to develop its villages. Adequate credit supply is essential for enabling rural communities to engage in economic activities. In July 1975, then-Prime Minister Indira Gandhi established a committee led by Narasimham to explore the need for rural banks as subsidiaries of public sector banks. Following their recommendations, Regional Rural Banks (RRBs) were founded on October 2, 1975, to meet the credit needs of rural communities, mobilize resources, and support economic development. This paper reviews various studies on the impact of RRBs on economic development at national and state levels, with a particular focus on Northeast India. Findings highlight that RRBs have contributed to increased income, asset acquisition, employment, and improved living standards. Recommendations include increased financing for Self-Help Groups (SHGs), cooperatives, Joint Liability Groups (JLGs), and small entrepreneurs. Despite challenges like limited infrastructure and literacy, RRBs continue to play a significant role in the rural development of Northeast India
Article Details
References
Adhikari, P., and Kashyap, R. (2013). Credit deployment of Assam Gramin Vikash Bank: A critical evaluation. Journal of Economic Development, 8(4), 130-143.
Agarwal, S., and Reddy, K. (2019). Financial strength of RRBs: Deposits and credit operations. Indian Journal of Finance, 12(3), 65-78.
Ahmed, M. (2014). Efficient resource utilization at Meghalaya Rural Bank: A model for other RRBs. Journal of Banking and Finance, 6(2), 55-67.
Ahmed, M., Ahmed, N., and Choudhury, S. (2013). Profitability determinants of Meghalaya Rural Bank: An analysis. International Journal of Business and Management Invention, 2(1), 33-42.
Barot, H., and Japee, N. (2021). Improving literacy and infrastructure to enhance RRB performance: A multifaceted approach. Journal of Rural Development, 15(2), 78-89.
Chakraborty, S., and Shukla, A. (2020). Agricultural credit multiplier effect on Punjab’s rural economy. Economic and Political Weekly, 55(20), 33-45.
Darnal, A., and Das, B. (2020). Performance analysis of Assam Gramin Vikash and Mizoram Rural Banks in Northeast India. Journal of Rural Economics, 7(1), 22-35.
Fanai, R., and Singh, L. (2015). Operational efficiency of Mizoram Rural Bank: A comparative study. Banking Trends, 4(3), 98-110.
Kaye, P. (2012). Impact of Arunachal Pradesh Rural Bank on tribal communities: Employment and living standards. Social Development Studies, 5(2), 76-89.
Kher, A. (2013). Rural credit structure in India: Contributions of RRBs in Gujarat. Journal of Development Studies, 9(1), 25-38.
Kumar, S., and Kumar, V. (2018). Role of banking institutions in rural transformation: Government initiatives. Journal of Rural Development and Administration, 11(2), 95-108.
Kumar, S., Kumar, V., and Singh, R. (2019). Growth of RRBs in India: Extending banking access and promoting savings. Journal of Financial Research, 14(3), 67-79.
Padhi, S. (2020). Role of RRBs in supporting small farmers in Odisha. Journal of Agricultural Economics, 17(2), 55-68.
Rao, S., and Rao, V. (2020). Urbanization impact on rural economies: Role of RRBs in sustaining communities. Economic Review, 22(4), 112-125.
Sarma, B., and Borman, M. (2014). Initiatives of Assam Gramin Vikash Bank: Recommendations for infrastructural enhancements. Development Policy Review, 7(3), 88-101.
Singh, A. (2021). Contributions of Manipur Rural Bank in deposit mobilization and credit disbursement. Banking and Finance Review, 8(1), 45-56.
Singh, T. J. (2013). Source of fund for RRBs: Government, State Governments, and Sponsor Banks. Journal of Rural Economics, 6(2), 78-89.
Singh, V., and Vanlalkulhpuia, L. (2014). Increased microfinance in Mizoram's agricultural sector: A critical need. Journal of Agricultural Finance, 6(2), 34-47.
Tigari, S., and Gaganadeepa, N. (2019). Role of RRBs in rural credit structures: A case study of Pragathi Krishna Gramin Bank. Journal of Rural Management, 12(1), 22-35.