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Emerging Issues in Rural Credit
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From the mid-sixties onwards, various attempts have been made to address the issue of endemic poverty in India. Inspite of various efforts, poverty alleviation still remains an elusive goal. The infamous Bengal famine or Naanka famine still haunts the memory of affected States such as Bengal, Bihar and Orissa. In the KBK (Koraput, Bolangir and Kalahandi) region as well as other tribal areas, even the sale of children remained at times a means to the survival of families in times of famine due to natural calamities. In Bastar and Kanker areas of Chhattisgarh, the barter economy still exists as the tribals exchange baskets of fruits for salt and kerosene. Inspite of a wide net work of banks and other formal and informal credit systems, it is estimated that 70% of the population are excluded from the financial system. This paper attempts to study the initiatives taken over the last 60 years in the country to ensure outreach of the banking system for the last mile clients.
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