Two days Workshop on 'Rural Credit and Financial Penetration in Punjab' in October/November 2015.

Workshop on 'Rural Credit and Financial Penetration in Punjab' in October/November 2015. Studies conducted in other states on the issue are also invited. Send topic & abstract by August 15, 2015 and the paper/s by September 30, 2015 at rbi.crrid@gmail.com

Concept Note

The Centre for Research in Rural and Industrial Development (CRRID), under the aegis of the RBI Chair will organize a two days workshop in October/November 2015 around the findings and suggestions in the book entitled Rural Credit and Financial Penetration in Punjab, which it published in February 2015. It has been well received in the academic, banking, as well as the policy making circles, and has been given wide coverage in the print media.


The book, based on a primary survey of 180 rural households from three banked and nine unbanked villages selected from three districts/tehsils, has made a number of vital suggestions. This is, indeed, a first of its kind study wherein the villages were divided into banked and unbanked for analysis, as the dynamics of rural credit tend to vary with the degree of banking access.

Whereas the book focuses on a number of issues relating to the flow of institutional and non-institutional credit in rural areas, the following observations would form the central theme of the workshop:

Why is it ..that, despite all out efforts by the banks, apex banking institutions and the government, the moneylender (Arhtiya) in Punjab continues to be a dominant source of loans in rural areas? More interestingly, their share in outstanding rural cash debt in the decade of the nineties has increased tremendously and remained almost stable during the first decade of the new millennium. Has the moneylender successfully gained further penetration into the rural credit market; or certain institutional arrangements have resulted into facilitating further their money lending operations? How far marketing/producer cooperatives should be encouraged as the competitor of the moneylender (Arhtiya) to mediate in the sale of foodgrains to public and private procurement agencies?

The above issues are critical, particularly, for the corporate entities that are set to enter into procurement operations in a big way in future. Also, doubts have been expressed in the continuation of public procurement of foodgrains in the country.

To deliberate on these issues and the suggestions brought to focus by the book we invite original papers based on primary and secondary data. These will be presented in the two-day workshop at CRRID, Chandigarh in October/November 2015. Papers dwelling on the experiences of other states on these issues are also welcome.

Specific topics slated for discussion in the workshop include:

1. Prevalence of institutional and non-institutional sources in rural areas, borrower and category of the village-wise (banked and unbanked).

2. Impact of easy access to rural bank branches on choice of sources of loans by households

3. Impact of easy access to rural bank branches on choice of sources of loans by households

4. Barriers in flow of institutional credit in rural areas.

5. Share of institutional and non-institutional sources in rural cash debt.

6. Relationship between agricultural product market reforms and prevalence of non-institutional credit.

7. Strategies to increase the share of institutional sources in rural loans.

Papers specifically discussing the value of sampling schemes that incorporate the banking status (banked vs. unbanked) of rural areas in the analysis of debt and investment are particularly welcome.

The suggestions and recommendations emerging from the workshop will be forwarded to the Reserve Bank of India, Ministry of Finance, Ministry of Rural Development, NABARD, state governments, and other stakeholders so that they may become inputs to policy making.

Important Dates

Submission of Abstract up to 300 words	Submission of Abstract up to 300 words
Submission of final paper by	September 30, 2015
Workshop Dates	October/November 2015

Important Note: Topic and abstract of the proposed article/s may please be sent by August 15, 2015 at our email address rbi.crrid@gmail.com