Rural Credit in Disarray: Moneylender’s Credit or Globalisation’s Discredit: A Case of Cross-Section Population in Rural Assam

In the era of globalization, the provision of institutional credit support to the ‘asset-less and asset-poor’ has dried up substantially. The reforms in Indian financial sector have led to the serious fall in credit-deposit ratio in the backward states on the one hand, and accentuated the problem of concentration of loans among the better off section, on the other.    The erosion of the welfare objective of the nationalized banks under the constant pressure of yielding profits has indirectly given an opportunity to the moneylenders to strengthen their grip in rural credit market. This new development may slow down the process of ensuring entitlement right over the critical minimum amount of resources to the socio-economically disadvantaged people. The findings are likely to be useful to the Ministry of Rural Development, planners and policy makers, NGOs, researchers and financial institutions including NABARD, NEDFi, SIRD, banks etc. in formulating an appropriate policy for effectively tackling some of the deep-seated problems which have crippled the rural economies in general and rural lending scenario in particular.