â€˜Urban Biasâ€™ in the Flow of Funds and Deposit Mobilisation:Evidence from Karnataka, India
Gagan Bihari Sahu () and
D. Rajasekhar ()
Working Papers from eSocialSciences
Until banking sector reforms were introduced in India in 1991, the emphasis in the credit provision through formal banking system was to meet the targets at the expense of the quality of credit and viability of the banking system. The policies after 1991 stipulated the banks to continue to meet targets on credit to socio-economically deprived sections and sectors. At the same time, banks were asked not to neglect the viability of the banking system. This paper examines the impact of such contrasting policies on the flow of credit and deposit mobilisation in rural and urban areas in Karnataka State, India. The paper argues that as bankers consider deposits a means for security, easy and attractive deposit schemes should be introduced in rural areas. This not only enhances the creditworthiness of rural dwellers but also ensures them more formal credit.
Keywords: banking system; credit mobilisation; deposit mobilisation; deposit scheme; creditworthiness; rural areas; urban areas; Economics; Banking (search for similar items in EconPapers)
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... s&AId=276&fref=repec
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:276
Access Statistics for this paper
More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().