Financing of Agriculture by Commercial Banks - Post-Reform Period

Chenimineni Vasudevulu Naidu

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The nationalization of banks was major step for canalizing credit to various sectors of economy for which agriculture is a major sector. In spite of significant achievements by the banking industry, there is still scope to extend credit facilities to agriculture sector in a much greater measure. After the introduction of financial sector reforms in the nineties, the Reserve Bank of India (RBI) directed these banks to lend 30 per cent of net bank credit to agriculture.

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