Financial Inclusion In Agriculture

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Financial Inclusion is a flagship programme started by the RBI to bring people under the ambit of formal financial inclusion. It is now an established fact that without access to formal finance at an affordable cost, inclusive growth is not possible. In order to provide credit to the agriculture sector, which has the potential for employment generation in rural area, the RBI has initiated several programme including revising priority sector lending guidelines. Under this scheme RBI has adopted a policy of providing credit through multiple channels and simplifying procedure for small and marginal farmers.
Since 2004, there has been a spurt in agricultural credit due to Govt. of India initiatives such as Doubling of Agriculture Credit in 2004-06,
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* As we know that Indian economy is based on agriculture, so financial inclusion in agriculture may be a better way to empower the Indian farmer.
Research Methodology:
This a descriptive research paper based on secondary data. Data have been found out from R.B.I, NABARD, Commercial Bank, Cooperative Banks and RRBs on different view point.
Introduction:
Rapid growth of Agriculture will not only ensure continued food security but also aid in growth in industry and the GDP. To sustain the growth in agriculture, it is imperative that required capital must be invested because capital is one of the vital inputs contributing to the success of all agricultural development programme. Therefore, financing for agriculture is an important task to fulfill the capital demand in Indian agriculture and credit plays the catalyst role in the process to accelerate the agriculture including industries, business and service sector of the economy. Simultaneously agricultural credit becomes a strong force to enhance productivity, production and profitability of farming, which play an important role to alleviate rural
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Commercial banks and RRBs together extended credit to 77.49 lakh new farmers during 2009-10 and co-operative banks to 13.43lakh, thus taking the total number of farmers brought newly under the banking system to 90.92 lakh. The total credit flow to agriculture during 2010-11 by commercial banks, RRBs and co-operative up to was Rs 468291 crore as compared to the annual target of Rs 375000.

Conclusion:
It is now an established fact that without access to formal finance at an affordable cost, inclusive growth is not possible. In order to provide credit to the productive sector, which has the potential for employment generation, government should adopt multi channel credit policy involving SHGs and Micro-Finance

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