Do rural banks matter? Evidence from the Indian social banking experiment.

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Between nationalisation in 1969 and liberalisation in 1992, the Indian central bank took control of the placement of banks as a means of advancing social objectives. During this period more than 50,000 new branches were built primarily in unbanked, rural locations. This represented a seven-fold increase in the proportion of rural locations which were banked. This paper evaluates the impact of this experiment on rural development. The authors conclude that the policy did lead to a reduction in rural poverty and inequality directly via the growth of the non-farm sector and indirectly through agricultural wages.

Document  -  English (en)

Document Information

Document Type Paper
Author Burgess, R.; Pande, R.
Year of Publication 2002
Publisher IMF - International Monetary Fund
Number of Pages 45 pp.
Region / Country Global, Asia, Southern Asia / India
Primary Language English (en)
Keywords Rural Banks, Rural Development
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