INTRODUCTION: (Md, Ibrahim kholilullah, AGRICULTURAL ECONOMICS ,2ND BATCH ,SYLHET AGRICULTURAL UNIVERSITY ,01718996557)
Bangladesh is an agro-based country, essentially are endeavoring for rapid development of the country. More or less 80 percent people directly or in directly depend on agriculture for their occupation and live in villages .But it is a matter of great sorrow that farmers of our country get less facility in agricultural inputs especially agricultural credit. Due to the lack of credit at proper time they cannot produce crops at proper efficiency. So the responsibility of rural banks needs to be increased. Because If current agricultural trends continue, by the year 2020 ...view middle of the document...
Rural banking is popular for very small towns and farmers who live far away from areas of larger population and cannot make the drive to these locations whenever they need to use banking services. Typically, an agent of the bank will visit these rural locations and offer to make transactions in an official capacity. Rural banking is a common practice in places where banking institutions are few and far between and people who need to carry out banking transactions may have difficulty finding a way to do so. With modern technology, more and more people have access to online systems that allow them to conduct certain types of banking without a nearby branch, but this technology is not available for everyone, and demand for rural banking is still high in some areas (Sathyajith S Kumar) .
According to Moshi conference(1969), the purpose of rural development is “a rise in the standard of living and favorable changes in the way life of the people concerned”. However, there is some anecdotal evidence that many beneficiaries of rural bank credit are salaried workers, whose likelihood of loan repayment is believed to be better than that of the small scale rural producers. There is also some evidence that loan repayments use the credit for purposes other than those for which the loans are intended. Much analysis have not been done on the effectiveness or impact of Bangladeshi rural bank on rural farmers. So I think this type of research is very important for our agriculture and farmers.
STATEMENT OF THE PROBLEM:
The Bangladesh government has made several attempts to promote rural development in an effort to increase the living standard of the people who reside in rural areas. These projects have failed for several reasons, including the high cost of living for farmers, and the lack of coordination between government agencies. More farmers in the rural areas do have problems in dealing with the rural banks or the credit institutions. Some of these problems include preparing viable business proposals and collateral securities that the banks do demand. Meanwhile, majority of the farmers are not well educated in order to plan or write their own business proposals. In addition, it becomes very difficult for the farmers to secure loans because of the collateral securities demanded by the banks. Some of the banks even look at the scale of the farm before granting loans. The most alarming problem that the farmers do face is the high interest rates or bank charges. It is very difficult these days for the farmers to borrow money from the rural banks because of the high interest rates. More of the farmers do even end up by selling their lands or assets in order to pay the loans they have borrowed. This research will therefore look at the impact of rural banks on farmers in the rural areas.
JUSTIFICATION OF THE STUDY:
As Bangladesh is an agro-based-country, agricultural sector and farmers can play an important role for economic...