Growth and Performance Ofrural Banking in India: An Empirical Study

Abstract

In India, the most substantial part of the population lives in the rural area (65.97% in 2018, according to World Bank Development Indicators). Banking services are far-off from the rural population. Hence financial inclusion has implemented by both the Government and Reserve Bank of India to bring the weak and deprived sections of the society within the community of the Indian banking system. This paper discusses only Role of Rural Banking & its growth, expansion and performance etc. The present study has been done covering ten years 2008-09 to 2017-18. This paper is mainly focused on several Regional Rural Banks (RRBs) and its branch expansion, deposits, advances and profitability of RRBs during the study period and to understand the growth and performance of RRBs. It appears in the study that demand for credit has increased in the rural areas for different purposes along with the increasing trend of branch expansion.