Structural Transformation of Rural Finance in India: A Critical Review

  • Sreelata Biswas
  • Anup Kumar Saha


India’s rural financial system has undergone structural transformation from a purely agricultural financial system from the early days of independence to the present day model of commercialization of microfinance industries. This chapter reviews this period of transformation by dividing it into four phases, classified chronologically on the basis of dominance and availability of a particular source of financial instruments in rural India. The four phases are: (a) Dominance of cooperatives, (b) bank nationalization and dominance of commercial banks, (c) establishment of National Bank for Agriculture and Rural Development (NABARD) and bank-self-help group (SHG) linkage, and (d) introduction of microfinance.


Commercial Bank Rural Economy Financial Inclusion Institutional Credit Microfinance Institution 
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Copyright information

© Springer India 2014

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of KalyaniKalyaniIndia
  2. 2.Department of EconomicsNabadwip Vidyasagar CollegeKalyaniIndia

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