International Journal of Innovative Research and Development

R. Uma Devi

Abstract

Agriculture forms the backbone of the Indian economy. It contributes 18.5 percent to the GDP and provides employment to about 52 percent of the total working population during the year 2006-07. The advanced technological changes in the agricultural sector necessitated the requirement of more working capital. Hence, the poor peasants in India are in search of timely credit. Co-operative banks were established on the principle of cooperation and to serve the poor peasants. The main function of these banks is to relieve the poor farmers from the clutches of money lenders. These are playing significant role in extending credit to the farm sector besides providing inputs, marketing and extension services. Particularly in the state of Andhra Pradesh (AP), Co-operatives playa very important and crucial role in the growth and development of agricultural sector.East Godavari District is an agriculturally developed district in Andhra Pradesh where paddy forms up to 53 percent of the total cultivated area. In the district, Co-operatives are functioning in most efficient manner by providing adequate, cheap and timely credit to agriculture and allied sector.They spread to the remote areas of the district in order to serve the needy farmers.These Banks accept deposits and lend both short-term and longterm credit for production and investment purpose through Primary Agricultural Cooperative Societies (PACS) and also directly to the farmers. Co-operative Banks are the friendly banks developed to relieve the poor from the vicious circle of poverty. These are providing timely and adequate credit to the three sectors viz., primary, territory and agriculture, particularly to agriculture and allied sector at cheaper rates.On this backdrop, an attempt is made to analyze the role of District Central Co-operative Bank (DCCB) in the agricultural development of East Godavari district.

Keywords

Co-operative Credit, District Central Co-operative Bank (DCCB), Primary
Agricultural Cooperative Societies (PACS), Irrigation, Yield, Crop and Term-loans, High Yield Varieties (HYV)

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R. Uma Devi

Abstract

Poverty and unemployment are the twin problems faced by the developing countries. According to the Planning Commission more than one third of India's total population i.e. 320 million live below the poverty line (BPL).Policy makers in India have realized the need for generating employment opportunities at a large scale to bring millions of population above the poverty line. As nearly 70 percent of the population live in rural areas and many of them suffer owing to seasonal unemployment, underemployment and disguised unemployment, the Government brought out a number of schemes with an aim to generate employment. The development planners realize the need for transition from income generation to self-employment and from self-employment to entrepreneurship development. Todaymicrofinance forms a part ofalmost all development intervention targeted at poverty alleviation. TheNew micro finance approaches have emerged in India involving the provision of thrift, credit and other financial services and products, with the aim to raise income levels and improve living standards.The micro finance programmes and institutions have become increasingly important components of strategies to reduce poverty or promote Micro and Small Enterprise Development (MSED). One of the most important micro finance approaches, pioneered by Non-Governmental Organizations (NGOs) is to create links between Commercial Banks (CBs) and NGOs and informal local groups. Micro finance through Self Help Groups (SHGs) is propagated as an alternative system of credit delivery for the poor. This paper attempts to give a comprehensive overview of all aspects of micro finance in India in general and Andhra Pradeshin particular regarding the different institutions involved in its promotion, the different modes of delivery, its weakness and the challenges etc. This study mainly focuses on the impact of micro finance system on the entrepreneurial development of Andhra Pradesh.

Keywords

Micro Finance, Poverty Alleviation, SHG, Entrepreneurial Development, Refinance, Grameen Bank, Income Generating Activities

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