Abstract— them from the grasp of neighborhood moneylenders.

Abstract— India is fundamentally an
agribusiness based nation and the general population of India still infer a
great deal up on farming profitability for their job. The principle reason for
this exploration paper was to achieve into light the significance of managing
an account part exceptionally the significance of territorial country banks
which play an vital part in giving agribusiness credit and to expel them from
the grasp of neighborhood moneylenders.

 

Keywords: Banks,
Agribusiness, mobile banking etc.

                                                                                                                                                             
I.           
INTRODUCTION1

Banks are
considered as the backbone of modern banking business. Banks play an important
role in the development of Indian economy. Banks had played an important role
in bringing agricultural revolution, in removing indifference of wealth, and in
the development of cottage industries. Prior to 
the development of modern banking facilities the condition of Indian
agriculture was very bad. Indian farmers were severely exploited by money-
lenders, and Sahukars but after  the
improvement in modern banking facilities the condition of Indian farmers had
improved up to a lot extent. Banks had provided great facilities to the farmers
in India. Banks played an very  important
role in the development of agriculture.

Banking sectors
provide much smaller amount of share of their loan portfolios to farmers for
agriculture compared to agricultures share gdp. This is the reason there is a
limitation in investment by both farmers and agro-enterprises. It also states
that the barrier to lending isn’t because of a lack of liquidity in the banking
sectors , but a lack of ability to expand lending to agriculture because
of  there is no guarantee of getting
money back in the given time period .

 

There are lots of
problems the financial Institutions are facing, some of them are:

1    
Financial institutions face a
lot of difficulties when offering a financial loans to the agriculture . some
of them are

2    
The cost of transaction for
reaching out to the rural population

3    
Higher impression of
non-reimbursement because of the sector specific risks , such as population ,
price and market risks .

4    
Lack of knowledge of financial
institutions about the management of transaction costs , agriculture specific
risks and how to market financial services to an agricultural clients .

5    
Sometimes government policies
also prove to be ineffective and could create problems in offering financial
services to the agricultural sectors . government policies like interest rate
caps , loan forgiveness programs create a disincentives for private sector
lending while create difficulties for government lending to agriculture .

 

                                                                                                                                                    
II.           
Aims and Objectives

 

Study of impact of Agriculture on
Financial Institutions in India, is based on the following objectives:

1.       To study the level of awareness about the Government Schemes by the
Farmers.

2.       To know the ground level implementation of
any Government schemes for Farmers.

3.       To find out the information dissemination to the farmers about the
loans and other schemes

 

 

                                                                                                                                               
III.           
Review of Literature

 

The requirement
for putting resources into agriculture is expanding because of the rising
population and change in the dietary preferences of growing population towards
higher value foods .

According to
estimates demand for food will increment by 70% by 2050 and at any cost
annually $80 billion   will be needed to
meet this demand and most of the part is expected to come from the private
sector .

Banking sectors provide much smaller amount of share of their loan
portfolios to farmers for agriculture compared to agricultures share gdp. This
is the reason there is a limitation in investment by both farmers and
agro-enterprises. It also states that the barrier to lending isn’t because of a
lack of liquidity in the banking sectors , but a lack of ability to expand lending
to agriculture because of  there is no
guarantee of getting money back in the given time period .

Financial
institutions face a lot of difficulties when offering a financial loans to the
agriculture . some of them are

·        
The cost of transaction for reaching out
to the rural population .

·        
Higher impression of non-reimbursement
because of the sector specific risks , such as population , price and market
risks .

·        
Lack of knowledge of financial
institutions about the management of transaction costs , agriculture specific
risks and how to market financial services to an agricultural clients .

·        
Sometimes government policies also prove
to be ineffective and could create problems in offering financial services to
the agricultural sectors . government policies like interest rate caps , loan
forgiveness programs create a disincentives for private sector lending while
create difficulties for government lending to agriculture .

                                                                                                                                               
IV.           
 Review of Literature

Financial needs
to focus on the following areas :

·        
Section the small land holder farmers
recognize their money related requirements. Small farmers are heterogeneous and
have diverse requirements. It is vital to distinguish different smallholder
sub-fragments and survey their requirements and imperatives before planning
arrangements and items. Likewise, smallholder ranchers don’t simply require
credit for horticultural exercises however they additionally require credit for
other family needs/exercises, reserve funds, instalment frameworks and
protection.

·        
Discover approaches to de-chance farming
account by tending to both eccentric (or individual) chances and in addition
essential fundamental dangers. Singular risks are  connected to credit risks appraisal, and data
and frameworks to offer assistance. Data can help money related establishments
in credit risk evaluation by advancing acknowledge departments and linkages for
esteem chain organizations, and so forth. Finding a decent security, for
instance, moveable guarantee, and not simply depend on titled land, could
likewise offer assistance. On the fundamental hazard, rural protection,
calamitous hazard programs, value supporting through commodity exchanges or
value chains, can likewise give a few solutions.

·        
Distinguish proper foundations and
conveyance channels that would decrease the expenses of serve rural customers.
An assortment of organizations can give rural back, depending upon the sorts of
customers they serve. MFIs and cooperatives can serve sub-fragments of little
holder agriculturists through their nearby preferences and aptitude. Business
banks can likewise give arrangements through esteem chains and for better
sorted out gatherings of smallholders. New innovations and progressions in
mobile banking arrangements and additionally expanding coordination of farmers
into better sorted out esteem chains can advance arrangements and conveyance
channels that diminish the cost of serving scatter populaces in country
territories.

                                                                                                                                                           
V.           
METHODOLOGY

This study examines the impact of agriculture on
financial Institutions in India 

. This examination is done by analyzing the
strategies with regard to the Internet and related technologies that were
utilized by the banks.

A.   
Target Populations–

 This research is exploratory research in
nature since it attempts to find out the qualitative factors such as effectiveness,
efficiency and other attributes on the impact of agriculture on financial Institutions
in India. Hence, the targeted population was farmers.

B.    Primary Data–

Survey questionnaire was administered to
empirically assess the impact of agriculture on financial Institutions in India.
A survey questionnaire will be completed by the farmers.

C.    Secondary Data–

The secondary data is obtained through
the Net, books and related journals.

1

 

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