FINANCE

INTRODUCTION

INTRODUCTION.

It is intended to describe in the present chapter the operations of the various economic and credit institutions obtaining in the field of finance of this district, such as the money lender, the co-operative societies, the commercial banks, the joint stock companies, and other official and demi-official bodies. Prosperity of a district and its material development depend to a very large extent upon how effectively and successfully do these institutions carry on their functions in the interest of the public.

From the economic point of view, the district, of Ratnagiri is very backward. Acute shortage of cultivable land and low yield of agricultural produce have made the people extremely poor. They are left with no alternative employment than agriculture due to the lack of any substantial development of industries. Difficulties of transport and inadequacy of the means of communications, again, add to their distress. Import facilities, too, are meagre.

During the past few years, however, the economy of the district is undergoing some notable changes especially as a result of social and political forces operating in the country as a whole. These changes include among them a gradual replacement of the moneylenders class by a net-work of banking institutions organised on modern lines, widening of public sector and simultaneous shrinkage in private sector, active interest taken by the State in promoting the welfare of the agricultural classes and particularly of the fishing community, and lastly the rapid spread of the co-operative movement throughout the district. These manifold changes materially affect the economy of the district and underline the importance of the role played by these institutions.

It will not be out of place to make here a special mention of the two schemes recently introduced by the Government to augment its financial resources. The first is the Small Savings Drive launched by the Government to evoke amongst the people a spirit of co-operation and mutual help and encourage them to contribute their humble mite to pool a mighty reserve. The second and more important perhaps, is the creation of the Life Insurance Corporation consequent upon the nationalisation of the life insurance business in the year 1956. An attempt is made in the following pages to give an account of how these changes have affected the economy of the district.

TOP