FINANCE

INTRODUCTION.

IN THIS CHAPTER ARE DESCRIBED THE VARIOUS FINANCIAL INSTITUTIONS that operate in the district. The successful functioning of these institutions largely helps the progress of agriculture, trade and industry.

Lack of adequate finance has been an important factor responsible for the slow development of trade and industry in the past. The village money-lender and the indigenous banker in the rural and urban areas respectively were the only sources of supply of credit. Prohibitive rates of interests charged by them were not conducive to economic progress. With the establishment of co-operative credit societies, co-operative banks and modern joint stock banks, economy of the district is undergoing a change. Money-lenders are being gradually replaced by agricultural credit co-operative societies, while the indigenous bankers are being relegated to the background by the modern joint stock banks. At the same time, the malpractices followed by the non-institutional private agencies like money-lenders and indigenous bankers are being regulated by progressive legislation. Besides, the district is now being served by insurance companies, post office savings banks, public limited and private limited companies, which collect surplus funds from the public and mobilise them into some productive activities.

It is not possible to give a complete account of the part which each one of these agencies plays in the financial affairs of the district in the absence of necessary data. An attempt has, however, been made to estimate and evaluate their role on the basis of material that is available.

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