BANKING TRADE AND COMMERCE

INTRODUCTION

The present chapter is divided into two parts viz., (i) Banking and Finance, and (2) Trade and Commerce. The first part of this chapter viz., Banking and Finance attempts to describe the various economic institutions prevailing in the district in the field of finance and commerce, such as, money lenders, co-operative banks, joint-stock companies, joint-stock banks, Life Insurance Corporation and other Government agencies, extending financial assistance to the people in the Akola District.

Among the institutions stated above, the money-lender's is the oldest one. In the Akola district it has survived through the centuries past. Even today the money-lender holds good influence over the agricultural masses in the district. The main reason for this is that he is an important source of credit supply to the agricultural people in the district. Another reason is the disinclination of the village people to invest their funds for productive purposes or deposit them in savings banks. Most of them prefer hoarding to savings as they would prefer savings to investment. This has proved a hindrance in the economic progress of the district.

The growth of modern banking in the district was one of the factors responsible for reducing the influence of money-lenders. With the establishment of the State Bank of India the banking facilities spread in the rural areas with the result that the hold of the money-lender on rural credit declined considerably. The cooperative movement which has promoted better production, better marketing and above all, better returns to its members is however the most important single factor which has reduced the influence of the money lender. Side by side with the agricultural credit societies, which mostly influence the activities of the rural people, many non-agricultural and production societies have been formed in this district. Much, however, is still expected of the co-operative movement suffering as it does from drawbacks, such as, mismanagement, improper linking of credit with marketing, poor recovery of loans and at some places a habitual preference for the money-lender by the agriculturists.

The second part of this chapter, viz., Trade and Commerce deals with the pattern and volume of trade. It gives a narration of the import and export trade, wholesale transactions, regulation of agricultural marketing, co-operative marketing and the extent of State trading in the district. The narration of regulated markets is given at length since the profitable disposal of agricultural produce is important for providing the necessary incentive to the agriculturist to increase produce. Regulation of agricultural marketing has also received the urgent attention of Government during the planning period and is regarded as an important aspect in strengthening the rural economy. This part also gives some information about retail trade, fairs, bazars and hawkers which have a role to play in the trading activities in the district.

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