Banking services in rural area

Hi! Friends,

I want to share some practical experience of banking services in my rural areas. I belong to rual area background. Banking services in rural area is very bad condition because of customer and bank manager. In rural area customers are uneducated. He doesn`t know about banking service in India. He is unable to reach bank and discuss about any topic related to bank activity. He doesn`t know how I can improve economic and social status. But government has been started lot of programs for rural people to up lift itself though a very small business /small scale enterprises or through any way. No agency is working in our area that tell them about this. Still bank manager is not doing good jobs for rural people. The rural people doesn`t know about what is the procedure of sanction of any types of loan. Here, I want to share there are involvement of middle man to facilitates loan to the rural people, and middle man is directly associated with the bank manager, because middle man is being educated and knows every thing about loan and other activities in Bank. Bank manager tells to middle man that u consult customer having keen need of loan for establishing something for his procurement. But middle man takes some share with bank manager, and customer gets less amount than original amount of sanction. For this kind of activity customer can not do any thing because he has lack of idea and knowledge. If customer would go at bank to talk about loan then bank manager will not give response to him i.e. bank manager ignores him.

Now I m telling about bank manager:- Bank manager have no interest to visit in rural area and find the difficulties of these peoples. He doesn`t think that how I can up lift the rural people. Just he always thinking about how I can earn maximum money from cutomers. There is lackuna in bank system that he recruits general graduate rather than agriculture graduate. In rural areas all bank manager get manager post after promotion basis i.e. from clerk, cashier or others. Bank manager doesn`t know about rural sociology, Psychology, rural economics and other rural developmental activity.

Here I would like to share loan procedure in rural areas:- If a customer wants to take loan of rupese 25000 to establish a very small business. Then customer doesn`t able to consult directly to bank manager rather he consults middle man for facilitating loan. In this way, after facilitating loan, customers gets only rupees and rest of money is distributing them by bank manager and middle man with proper share.

Others problems with the rural people are as follows:-

> The number of bank in rural area is too less. Therefore whatever bank situated in rural area is distant from village or customer home.There is coming problem with customer because he has not any vehicle to go there. In our area (BLOCK-VISFI) availability of banks are -PNB, Kshetriya Grameen Bank and hardly 1 or 2 more.

> In rural areas, the Language are also a major problems. Customers do not able to communicate with manager and vice-versa, so bank manager should know regional language.

> Facility of Kisan Credit Card (KCC) only provided to high land holder farmers and not for marginal and small farmers.

>Agriculture loan provides only to high land holder farmers and not for small and marginal farmers.

> There is not facility of micro-finance in rural area.

> And lastly, no proper utilization of internet so that bank manager will know regularly change in banking system. No ATM facility in rural areas. No core banking in rural area bank.

*Now I will discuss about Education loan (a true story of myself):- Facility of education loan is very-very bad. I was studying in B.Sc. (Ag.) 2nd yr. At that time I was went to Panjab National Bank (PNB) for taking information about education loan. I told to manager that I am preparing for MBA entrance examination, so I will have need of education loan but firstly he was ignoring me. But after sometime he asked me a lot of questions regarding our parent

.Following questions asked to me :-

1. is your father in govt. job?

Ans.-no

2. What is your father`s bank balance?

Ans-nothing

3. How much land holding capacity of your father?

Ans. Approx 2 acre

4. your father account is running in our bank?

Ans. No

5. Which types of LIC that your father have?

Ans. No any

After these questions bank manager told me I can not provide education loan whatever the MBA institute / colleges in India.Then I told bank manager about RBI rule. But bank manager do not want to listen. But according to RBI rule each and every bank will have to provide education loan for studying in professional, non professional courses and any higher education up to 4 lacks without any guarantor or any security money in India. But if more than that then there will be requirement of security money and guarantor. I told bank manager but he was not giving response to me. Then I came home and discuss with my father. But our BHU senior told me that there will be no problem of facilitating the education loan.

Similar types of story had happened with my Friend Arun studying in M. Sc. (Microbial Biotechnology) at AAI-DU, Nainy, Allahabad . But he gave all answer in positive way, Still Bank manager was ignoring them. His father is working as a principal of High school in our village. After going long discussion bank manager agreed to provide loan to my friend.

*Conclusion:- We can draw inference from above story that bank manager in rural area is very traditional in nature. He has not information of current scenario of banking system in India. I believe that rural bank manager does`nt know about professional, non professional courses and higher education in India. He doesn`t know about Indian premier institutes, colleges and universities in India. Rural bank provides educational of rich students and not for economical poor students. I thought that there is tremendous requirement to improvement of rural banking system. For that purpose, we all persons of India should think about that otherwise we can not imagine about ariculture and rural development, Woman empowerment & Labors condition. If we do not think over that then there will be no betterment of life style, entrepreneurs skills & standard of rural peoples.

Thanks,

A.K.Sahu