What are the recent government strategies to expand formal sources of credit in India ?

Asked by drrajeev1971 | 4th Nov, 2016, 05:52: PM

Expert Answer:

Government initiated certain strategies to expand formal source of credit in India as follows:

  1. Increased credit flow towards agricultural sector through the policy of doubling the agricultural credit method in 3 years (2004-05)
  2. Expanded the outreach of the banking services through banking no-frills account with low or zero minimum balances and low or zero charges (2005). Regional rural bank allowed limited overdraft facilities in no-frills account without any collateral security.
  3. National Agricultural Insurance Scheme (NAIS) is implemented since Rabi 1999-2000 season to provide insurance coverage and financial support to the farmers
  4. Government of India & NABARD - Rural Infrastructure Development Fund, Micro Finance Innovations, Kisan Credit Card Schemes, Refinance under Swarnajayanti Gram Swarozgar Yojna (SGSY) and Co-operative Development Fund.

Answered by Tharageswari S | 5th Nov, 2016, 08:46: PM

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