Role of Special Banks in Agricultural and Rural Development - A Study with Reference to Karnataka

The special banks providing long term Agricultural credit are known as Primary Co-operative Agricultural and Rural Development Banks (initially Land development Banks). The first of this kind of bank was established at Jhang in Panjab in the year 1920. Though, primary Cooperative Agricultural and Rural Development Banks were established dating back to independence, the real growth of these Banks took place only after passing the Land Development Act in the year 1930. These banks were initially called as Land Mortgage Banks as they were financing on the mortgage of Land for which they are used to finance. The Agriculture Credit review Committee in its Report submitted in the year 1989 recommended to incorporate Agriculture and allied activities in its credit policy. But now these banks have included rural credit in its financing policy. Since these banks are playing a greater role in the development of rural area also these banks are now renamed as ‘Primary Co-operative Agricultural and Rural Development Banks. In this paper an attempt is made to explain the Role of Primary Co-operative Agricultural and Rural Development Banks in India and how these Banks are helping in the economic growth of India