DEMONETIZATION- RURAL BANKING - CHALLENGES AHEAD

DEMONETIZATION- RURAL BANKING - CHALLENGES AHEAD

Rural economy predominantly depend on cash and after demonetization slowly farmers are trying to convert to banking. In our village one farmer got all his daily wage workers open bank accounts and started cheque payments. Workers are demanding weekly paid holiday to complete banking and it's creating rift in agrarian systems. These shall be addressed through mobile banking (not phone banking) or allowing farmer to present workers cheques or any other appropriate systems.

Lack of support systems to complete paper work at banks, insufficient cash availability, redoing of paper work etc are real irritants at rural branches and heard people particularly women abusing PM with comments like bachelor without heart, child or family less can not understand the problems of poor and totally unhappy with the system. 

Shortage of small denominations and difficulties in handling 2000 notes in rural areas is further adding fuel to fire.

When the produce is sold money is paid in cash, land is sold cash is transacted and inputs are purchased on cash basis. Converting all these into workable banking systems with better comfort than cash transactions is real challenge in rural banking.

Hope these are being addressed effectively and rural masses are keenly looking for solutions.

B G Reddy 

grbonthu@gmail.com

9866889246