GENERAL ECONOMIC SURVEY

FINANCE

The period of nearly 80 years since the publication of old Ratnagiri Gazetteer in 1880 has seen many changes in the field of finance. Banking institutions of the modern type made their appearance in the national economy at a much later stage. In a backward district like Ratnagiri, they have come into existence in comparatively recent years. In old days only persons who could be termed as bankers were the moneylenders, who dealt in credit but did not generally open deposit accounts. A few traders dealt in bills of exchange. Savings were meagre and most of them were hoarded. Very few investments were made by the people even in Government securities. Persons who had some spare cash were inclined to lend it even though moneylending was not their profession. Loans were granted on the security of gold and silver ornaments. The rate of interest varied between 12 and 14 per cent. Recent legislation for regulating the business of money-lending has naturally interfered with the freedom of money-lenders. The Money Lenders Act of 1946, imposing various restrictions in respect of the rate of interest, keeping of accounts etc., has led to a fall in the number of money-lenders and the total extent of their operations. Provision for the grant of loans to agriculturists by Government loans was made under two Acts, the Land Improvements Act of 1883 and the Agricultural Lands Act of 1884. The loans sanctioned to cultivators under these two Acts did not. however, amount of substantial figures. It is now proposed to extend to the cultivator all the necessary financial assistance through co-operative bodies.

Besides the farmer, the cottage and small scale industries also attracted Government's attention in pursuance of its development programme for small scale industries. A separate department known as Industrial Co-operatives and Village Industries Department was established with a view to granting loans and subsidies to numerous classes of persons, including not only the farmers but also traders, artisans, salary-earners and to small industries like oil-crushing, hand-looms, tanning, leather goods etc. The noteworthy point in this financial scheme is that monetary assistance is granted through cooperative societies. The number of these societies and of their members have now considerably increased because of this policy. For example, in 1957-58, the total number of societies registered in the district was 566 with a membership of 80,758. The share capital of all these societies was Rs. 22,15,816 and their reserve fund and other funds were Rs. 14,669. The deposits kept with them and their borrowings from various sources amounted to Rs. 12,05,052. There were various types of societies both agricultural and non-agricultural, single and multi-purpose.

Next agency providing financial assistance is the joint stock banks, which could be regarded as an entirely new factor in the financial field. The Ratnagiri Urban Co-operative Bank Ltd., was the first of its type established at the district headquarters in 1914. The branches of the Bank of Maharashtra Ltd., the Canara Industrial and Banking Syndicate Ltd., the Bank of Konkan Ltd. [This is now amalgamated in the Bank of Maharashtra.] and the State Bank of India have been opened quite recently. They provide usual banking facilities to the public, besides financing of trade, agriculture and storage and movement of agricultural produce. The State Bank, started in 1956, operates as the agent of the Reserve Bank of India, conducts Government business and affords remittance and exchange facilities to local bankers and the public. There are also eight urban co-operative banks which cater to the needs of the agriculturist. A District Central Co-operative Bank has also been started recently.

The development of modern banking has encouraged the saving and investing habits among the people. However, the general poverty of the region is reflected in the business attracted by the banks in the form of investment by the people in the joint stock companies. The other agencies to attract savings of the people are the postal savings banks, and schemes like Treasury Saving Deposit Certificates, 15-year Annuity Certificates and 12-year National Savings Certificates, offered by the Central Government. In 1954 Ratnagiri district contributed a sum of Rs. 9 lakhs towards the Small Savings Schemes.

As in banking so also in the field of insurance, the district is making a gradual headway especially after the nationalisation of life insurance business. That quite a good amount of money is being saved in this form can be inferred from the fact that 2,595 policies involving a sum of Rs. 54,53,550 were accepted in 1958.

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