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Abstract
Since Indian independence in 1947, successive governments have emphasised the link between improving access to finance and reducing poverty. In the year 1950s the creation of a nationwide network of rural cooperative banks was an attempt to improve financial access for India’s poor, 75% of whom are concentrated in rural areas. This was followed by further measures aimed at increasing financial access- the nationalisation of commercial banks in the late 1960s, and an aggressive drive through the 1970s and 1980s to expand rural banking. India is an agro based economy since beginning and major contributor in national income of country and the majority of the sector comes from weaker section or from below poverty. To develop & rapid the growth of economy the government of India took major initiative after the independence & made the significant provision in various five year planning’s of country to increase food grain & promote the cultivation operations & for the betterment of deprived section of India such as green revolution plan etc. after the independence but along with the promotion of field operation in rural areas and weaker section, the need of financial assistance & promotion was felt for the radical growth of rural areas, weaker section and boost up the agro economy. The aim of writing this paper is to analysed comparative growth of banking sector in rural area and development of micro finance services in India and to what extant banking & MFS achieved their motive of establishment.