Banking Sector Reforms and Its Impact on Agricultural Finance: A Case Study of Kadapa District

Inspite of banking sector reforms the financial institutions, particularly, commercial banks, couldn’t develop innovations in financial intermediation that would allow them to serve the rural poor and maintain their own financial viability. This highlights the need for reorientation of the policies of the government to strengthen the financial sector. Unless suitable policy formulations are designed to carry forward the reforms in the financial sector, the solutions to the problems of rural sector, specially for weaker sections among farming community and inequality remain as distant goals. Hence the governments at various levels along with the Reserve Bank of India and the NABARD have to implement the needed reforms further in the banking sector for expansion of institutional credit facilities to achieve inclusive agricultural growth in Kadapa district in particular and in all the rest of the backward rural areas of the country in general.