The Gazetteers Department

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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