Page 1 of 16
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 03
March 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 199
Perceptions of officials of Regional Rural Banks about social equity based rural
development in Punjab
1. Ramandeep S. Deol, Research Scholar, IKG-PTU, Jalandhar
2. Dr. Jasdeep K. Dhami, Director, CT-IMT, Jalandhar
Introduction
The main purpose of the rural Bank is to provide financial facilities to the rural people. The
regional rural banks were established with a view to developing the rural economy by providing, for
the purpose of development of agriculture, trade, commerce, industry and their productive activities in
the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural
labourers, artisans, and small entrepreneurs and for matters connected there with and incidental
thereto. RRBs are owned by government, based on region and rurally oriented Banks are here to
supplement the existing rural credit institutional system.
As we all know that the RRBs, which
are often seen as the rural people‟s bank, have
taken deep roots and have become an
inseparable part of the rural financial structure.
Rural finance is a matter of great concern as
India is an agricultural country, where 60
percent of the population lives in rural areas.
So we need a strong institutional credit facility
for the rural people who are mainly dependent
on some non-institutional sector for credit
which is an age old system. It consists mainly
of rural money lenders, traders, merchants etc.
Realizing the needs of rural India Indian
government had took many steps to promote
the growth of the rural mainly agriculture
sector. Among these steps establishment of
RRBs was very important and effective. The
network of the rural regional banks has
expended remarkably in the rural areas in the
last three decades. Starting with 6 RRBs with
17 branches covering 12 districts in December
1975, thereafter expanding to 196 RRBs with
14,446 branches working in 518 districts
across the country in March 2004 and
presently we have 56 RRBs having 20920
branches across 644 notified districts in 27
states and union territory of Puducherry as on
31st march 2016. RRBs have a large branch
network in the rural area forming around 43
per cent of the total rural branches of
commercial bank. With the growth of the
branch network RRBs has expanded their
banking activities in the remote and non- banking areas to mobilise rural savings.
Therefore, the present study was
undertaken with the following specific
objective:
Objective
Page 2 of 16
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 03
March 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 200
To study the perceptions of
officials of RRBs about social equity
based rural development in Punjab
Review of Literature
Hazari, (1976), in his study discus about the
participation of Regional Rural Banks in
development of rural economy and also
introduced the concept of command area
development. He stated that for the balanced
development of a region, it is necessary to
channelize the amenities and natural resources
to the groups of farmers instead of solely
depending on individual farmer. He said that
this method should be used in banking sector
also for the proper use of facilities and man
power.
Rao, (1980), in his study he analyse the impact
of programmes on target group based on the
performance of SreeVisakh Gramin Bank
(SVGB). He observed two branches of SVGB
which were Kalingapatanam and Rajam to
represent irrigated and non-irrigated areas
respectively. He found that the net return from
credit is considerably higher except for
business activity in the irrigated area than the
non- irrigated area. He concluded that efficient
work culture of the bank worker is the main
reason for such tremendous success and the
bank was functioning well in meeting the
credit requirements of the target group.
Wadhva (1980) made a noteworthy study,
entitled “Rural Banks for Rural Development”.
This study covered an analysis of the progress
made by all Regional Rural Banks in Two
regional states Punjab and Haryana in 1977.It
found that RRBs has to follow some
complicated procedures and formalities given
by the sponsor banks, it also realize that the
RRBs are not able to disburse the required
amount of credit set by the government of
India. It offered some valuable suggestions for
the restructuring of the Regional Rural Banks.
This study was conducted in 1977 when the
Regional Rural Banks were in the initial stages
and the assessment of their performance was
premature.
Kanthimathinathan (2016) discussed about the
role of RRBs in Indian rural economy. RRBs
are established to develop the rural economy
and to provide the credit facility to rural and
agriculture sector. Objective of the study is to
examine the role of RRB in the growth of
Indian economy, to examine the performance
and operation of RRBs and to give necessary
suggestions on how to improve the sources of
RRBs. RRB promote savings, mobilize
savings, high employment rate, Capital
formation, Transportation, Government loans,
Construction, Agri. Development, Industrial
development, Safekeeping of valueable things
and Allocating savings among alternatives. So
this study examines all the aspects and
developments within the RRBs.
N. Dhanraj and R. Sai (2016) in their study
discuss about the aim of establishment of
RRBs that is to facilitate the rural economy by
providing easy financial help and support.
RRB provides safer financial help in
comparison to local money lenders and
Page 3 of 16
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 03
March 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 201
landlords. The aim of this study is to examine
the growth pattern of RRB, to study the
national agriculture policy and programme in
rural credit in India and to analyse the
performance of Telegana Gramena Bank.
Research Methodology
In this study, sampling unit
consisted of the selected branches Punjab
Gramin Bank (twenty), Malwa Gramin
Bank (ten) and Sutlej Gramin Bank (ten)
in the state of Punjab and the employees of
the same. To get the perceptions of bank
officials in Punjab; a number of 3 bank
officials per branch i.e. 60 from Malwa
Gramin Bank, 30 from Malwa Gramin
Bank and 30 from Sutlej Gramin Bank
(total 120) in the state of Punjab were
interviewed for data collection. To analyze
the data, statistical techniques like
ANOVA and chi-square were used.
Results and Discussion
The results arrived at after
analyzing the collected data, have been
discussed in 2 parts as under:
Part-1 Socio-Economic Profile of
Officials
Part-2 Social Equity Based Rural
Development
Part-1 Socio-Economic Profile
1.1 Age
The distribution of bank officials according to their age has been shown in Table 1.1.
Table 1.1: Distribution of RRBs officials according to their age
Age (years) PGB MGB SGB Total
No. %age No. %age No. %age No. %age
25-35 28 46.67 16 53.33 13 43.33 57 47.50
35-50 18 30.00 8 26.67 13 43.33 39 32.50
Above 50 14 23.33 6 20.00 4 13.33 24 20.00
Mean 39.67 38.40 38.67 39.10
SD 4.13 4.27 4.21 4.19
F-ratio 1.16
A perusal of Table 1.1 showed that the highest proportion i.e. 47.50 percent of total
bank officials belonged to the age group of 25-35years, followed by 32.50 percent in the age
group of 35-50 years, while the lowest proportion i.e. 20.00 percent of them belonged to the
age group of above 50 years. Similar was the age pattern of bank officials in different banks.
The average age of bank officials came to be 39.67, 38.40 and 38.67 years in PGB, MGB and
