A STUDY ON THE GROWTH AND CHALLENGES OF RURAL BANKING WITH REFERENCE TO NASHIK DISTRICT

Abstract:

Rural banking constitutes the backbone of agricultural and rural development in India, serving as the primary conduit for financial services in underserved regions. This study examines the growth trajectory and persistent challenges of rural banking with specific reference to Nashik District, one of the most agriculturally significant districts in Maharashtra. The research employs a mixed-methods approach, drawing upon secondary data from the Reserve Bank of India, NABARD, and Census of India, supplemented by illustrative primary survey data from selected tehsils of Nashik District. The findings reveal that while financial inclusion initiatives such as the Pradhan Mantri Jan Dhan Yojana have significantly expanded account penetration, the quality of financial services remains uneven across the district's rural hinterlands. Regional Rural Banks and cooperative banking institutions have demonstrated commendable outreach, yet they continue to grapple with rising non-performing assets, inadequate technological infrastructure, and staffing shortages. The study further identifies that technology adoption, particularly through Core Banking Solutions and mobile banking, has progressed at a differential pace, with remote tehsils lagging considerably behind urban-centric branches. Credit patterns indicate a growing reliance on Kisan Credit Cards and SHG-bank linkage programmes, although the proportion of agricultural credit to total rural credit has shown a modest decline in recent years. The paper concludes with policy recommendations aimed at strengthening digital infrastructure, enhancing financial literacy, and improving the sustainability of rural banking operations in Nashik District.