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GENERAL ECONOMIC SURVEY |
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FINANCE
Since the old Gazetteer was published considerable
changes have taken place in the sphere of finance both in rural and
in urban areas. The most remarkable feature of these developments is
active Government participation in financial activity and regulation
by Government of financial institutions and their operations.
The money lender as an institution of credit is very
old in India and continues to play even today an important role in
the rural finance of the district. It is believed that they probably
supply about 80 per cent. of the total credit requirements of the
rural area of the district. They may not however continue to hold
the same predominent position in future in view of Governmental
regulation of their activities and in view of competition from the
growing number of institutional agencies that are being set up for
the supply of finance to the cultivator.
Another important landmark in rural finance is the
introduction of Governmental agencies to advance seasonal loans.
Some kind of a gap in the structure of rural credit was created as a
result of the enforcement of the Bombay Agricultural Debt Relief
Act, 1939, which made alienation of land difficult and therefore
made moneylenders extremely cautious in advancing loans. To meet to
some extent the lacuna thus caused the Government of Bombay
initiated a system of crop or seasonal finance; the principal
agencies of the system are: co-operative societies; Revenue
department; grain depots and persons authorised under section 54 of
the Bombay Agricultural Debtors' Relief Act, 1947. Through these
agencies loans are advanced, against the security of crops grown by
them, to persons who are parties to the proceedings under the Bombay
Agricultural Debtors' Relief Act. The Bombay State Co-operative Bank
has also followed a liberal policy of crop finance, both in favour
of money crops and foodgrains.
Another important landmark in rural finance is the
introduction of co-operative societies and banks, which endeavour
not only to meet the short and long term credit requirements of the
cultivator but also to fetch good prices for their products. Thus
they attack the problem of rural finance from two directions. On the
one side they try to ensure that the cultivator gets advances at
reasonable rates and on reasonable conditions. On the other side
they try to increase his receipts by helping him to get better
prices for his products. The various co-operative societies and
banks working in the district are: (1) agricultural co-operative
credit societies; (2) multipurpose societies; (3) non-agricultural
credit societies and (4) district central co-operative banks.
Among the agencies that mop up small savings, postal
savings banks are the most important in view of their suitability to
tap rural areas, their prestige and the confidence of the public
enjoyed by them. The National Saving Scheme is another important
scheme mopping up small savings. Its beginning could be traced to
the First World War when Government issued postal cash certificates.
Joint stock banks do banking business in urban
areas. Three such banks have their registered offices in the
district. They confine their sphere of activity to urban areas and
generally advance short term loans. The formation of the State Bank
of India is another landmark in modern banking in India. The State
Bank is trying to tap rural areas and to widen its sphere of
activities. Recently Government has also entered upon the scene and
has advanced loans and assistance to village, cottage and other
industries in quite a number of ways.
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